For the second quarter, Lululemon Athletica expects to report net revenue of between $2.140 billion and $2.170 billion, representing growth of approximately 15 percent.
Lululemon Athletica Inc. (NASDAQ: LULU), a Canadian multinational sports apparel retailer, reported results for the first quarter (Q1) of fiscal 2023 on June 1. During the first quarter, Lululemon Athletica reported revenue of $2 billion, while analysts surveyed. REFINITIV expects $1.93 billion. In addition, the company announced that its earnings per share (EPS) for the first quarter came in at $2.28 versus the $1.98 expected by analysts surveyed by REFINITIV. As a result, shares of LULU gained nearly 13.29 percent during after-hours market Thursday to trade around $372.
The $43.96 billion company has seen the stock market gain nearly 3 percent year-to-date according to the latest market data.
A closer look at Lululemon Athletica’s first quarter 2023 events
According to the first-quarter announcement, Lululemon Athletica reported net income of $290.4 million, or $2.28 per share, compared to $190 million, or $1.48 per share during the same period last year. Calvin McDonald, CEO, noted that the company has invested heavily in innovative products and quality relationships with customers around the world.
“This year we celebrate our 25th anniversary, and our community model remains one of our biggest competitive advantages. We are excited about the future and remain on track to achieve our Power of Three x 2 growth plan,” McDonald added.
Notably, the company’s net revenue increased by about 17 percent in North America and 60 percent internationally during the first quarter ended April 30, compared to the same period last year. In addition, the company’s direct-to-consumer net revenue represents 42 percent of total net revenue, compared to about 45 percent during the same period last year.
It is worth noting that Lululemon’s gross profit increased by nearly 32 percent during the first quarter, to $1.2 billion. As a result, the company announced that it had repurchased approximately 0.3 million shares, in common stock, at an average price of $336.37 per share for a total cost of $98.1 million.
During the first quarter, Lululemon Athletica opened seven new stores thus ending the quarter with 662 stores. Hence, the company expected better results for the remainder of the year as it revised its FY23 forecast.
For the second quarter, Lululemon Athletica expects to report net revenue of between $2.140 billion and $2.170 billion, representing growth of approximately 15 percent. Over the course of the year, the company revised forecasts to net revenue of $9.440 billion to $9.510 billion, representing growth of about 17 percent.
According to Megan Frank, the company’s chief financial officer, lower air freight and an acceleration in China sales contributed to the good performance for the quarter.
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