Lululemon shares surge after forecast increase earnings beat expectations

Lululemon shares surge after forecast increase earnings beat expectations

first_imgVANCOUVER – Shares of Lululemon Athletica Inc. surged Friday after the company beat expectations in its latest results and increased its earnings outlook for the year.The company’s share price climbed US$17.14 or 16.32 per cent to close at US$122.19 on the Nasdaq to hit an all-time high.The stock rise came after the Vancouver-based clothing company reported net income of US$75.2 million in the quarter ending April 29, beating analyst expectations of US$61.3 million according to Thomson Reuters Eikon. It was also a big increase from the US$31.3 million for the same quarter last year.The yoga and athletic-focused retailer also increased its diluted earnings per share expectations to between US$3.10 and US$3.18 from the US$3 to US$3.08 it had forecast in March.The strong earnings come as the company reported sales growth in both its stores and online, including an eight per cent increase in comparable store sales and a 62 per cent increase in direct to consumer revenue which includes online sales.Retail analyst Neil Saunders says the online sales boost can be attributed to a relaunched website, while overall the company continues to innovate on products and has significant growth potential including with its menswear offerings.last_img

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