Pedestrians go by a Lululemon retailer.
Scott Mlyn | CNBC
Lululemon Athletica Inc. on Thursday reported quarterly earnings and income that beat analysts’ expectations, as customers stocked up on exercise gear at the same time as surging costs have damage different retailers’ attire gross sales.
The firm additionally raised its outlook for the yr. Shares had been up round 8% in after-hours buying and selling.
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Here’s what the corporate reported in contrast with what Wall Street was anticipating, based mostly on a survey of analysts by Refinitiv:
- Earnings per share: $2.20, adjusted, vs. $1.87 cents anticipated
- Revenue: $1.87 billion vs. $1.774 billion anticipated
Same retailer gross sales grew 23%, which beat StreetAccount’s estimate of 17.6%. Net gross sales rose 29% to $1.87 billion. The firm mentioned that visitors stays robust each in shops and on-line, at the same time as surging inflation cramps shoppers’ spending.
“Despite the challenges around us in the macro-environment, guest traffic in our stores and on our e-commerce sites remains robust, which speaks to the strength of our multi-dimensional operating model,” Chief Financial Officer Meghan Frank mentioned in a information launch.
Lululemon has a higher-income buyer base that appears largely unfettered by inflationary pressures. Still, different higher-end retailers like Nordstrom and Macy’s slashed their outlook this quarter on fears of slowing demand. Lululemon, then again, has boosted its steering in two consecutive quarters.
Lululemon continued brick-and-mortar enlargement in the course of the quarter, with 21 web new shops for a complete of 600 areas.
Inventories had been up 85% to $1.5 billion in comparison with the identical interval final yr. Retailers usually have needed to cope with swelling stock ranges as customers modify their spending habits. Lululemon mentioned Thursday it’s assured the stock stage will assist it increase gross sales in the course of the vacation purchasing season.
The firm mentioned it now expects 2022 income of between $7.865 billion and $7.940 billion, up from the vary of $7.610 billion to $7.710 billion it acknowledged final quarter. The firm additionally raised its adjusted earnings per share outlook to a variety of $9.75 to $9.90, from final quarter’s steering of $9.35 to $9.50 adjusted.
The launch additionally maintained the corporate’s long-term outlook of doubling web income to $12.5 billion from from 2021 to 2026. The plan contains an enlargement of its menswear enterprise, footwear, and membership-based health lessons. Upon the plan’s announcement within the spring, some analysts had been skeptical about Lululemon’s capacity to attain the lofty longer-term goal.
Read the earnings launch right here.
This is a growing story. Check again for updates.