Lululemon shares surge after forecast increase, earnings beat expectations

The stock rise came after Vancouver-based clothing company reported net income of US$75.2 million

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.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Oak Bay man designer behind Canucks’ retro jersey

Jeremie White was 20 years old when he told Canucks assistant GM Brian Burke he had a design

Tesla internship calls for UVic designer of electric ‘Caboost’

Saanich’s Simon Park to test design of his invention at Tesla

BC Farmers’ Market Trail a one-stop virtual guide to the goods

New website assembles, profiles 145+ farmers’ markets throughout B.C.

Westshore Rebels game postponed due to poor air quality conditions

Games expected to continue the following week

Saanich police investigating sexual assault in broad daylight

Social media lit up with accusations incident took place at Regina Park tent city

Mother charged with homicide of Langley seven-year-old

Aaliyah Rosa’s 36-year-old mother charged with second degree murder: IHIT

Five things to do in Greater Victoria this weekend

Puppy yoga, horses, cars, water guns and more make up this weekend’s list of events to see

Despite threats, Soldiers of Odin a no show at B.C. tent city

Nanaimo’s Discontent City held a counter rally on Sunday

Trudeau formally announces he’ll run again in 2019

PM Justin Trudeau gears up to run in next year’s election

Smoke from B.C. wildfires prompts air quality advisories across Western Canada

A massive cloud of smoke hangs over B.C. and Alberta due to wildfires

Pope on sex abuse: “We showed no care for the little ones”

In response to the Pennsylvania report, Francis labeled the misconduct “crimes”

Ottawa announces $189M to extend employment insurance for seasonal workers

The pilot project provides seasonal workers with up to five more weeks of benefits

Most Read