Lululemon forecasts better-than-expected sales as digital business accelerates

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Pedestrians wearing protective masks walk past a Lululemon store in San Francisco, California, on Monday, March 29, 2021.
David Paul Morris | Bloomberg | Getty Images

Lululemon on Tuesday reported revenue and profit for the holiday quarter that topped analysts’ estimates, boosted by the athletic apparel maker’s online business, and double-digit sales growth in both its women’s and men’s divisions.

It also offered an upbeat outlook for sales during the current quarter, anticipating consumer demand for its sweat-wicking leggings and sports bras will continue.

Its shares were up about 1% in afterhours trading.

Here’s how Lululemon did during the quarter ended Jan. 31 compared with what analysts were expecting, based on a poll by Refinitiv:

  • Earnings per share: $2.58 adjusted vs. $2.49 expected
  • Revenue: $1.73 billion vs. $1.66 billion expected

Lululemon reported net income of $329.8 million, or $2.52 per share, compared with net income of $298 million, or $2.28 per share, a year earlier. Excluding one-time items, the company earned $2.58 per share, better than the $2.49 expected by analysts.

Its revenue spiked roughly 24% to $1.73 billion from $1.4 billion a year earlier. That topped expectations for $1.66 billion.

Lululemon now expects first-quarter revenue to be in a range of $1.10 billion to $1.13 billion, compared with analysts’ average estimate of $999.5 million, according to Refinitiv.

Lululemon’s shares are down about 8% year to date, as of Tuesday’s market close. Lululemon has a market cap of $41.3 billion.

Find the press release from Lululemon here.

This story is developing. Please check back for updates.

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