Lululemon posts strong first quarter, revenues up 20 percent

Lululemon Athletica Inc., for the first quarter ended May 5, 2019 reported net revenue of 782.3 million dollars, an increase of 20 percent compared to the first quarter of fiscal 2018. On a constant dollar basis, the company said, net revenue increased 22 percent, while based on a shifted calendar, total comparable sales increased 14 percent or 16 percent on a constant dollar basis. Comparable store sales increased 6 percent or 8 percent on a constant dollar basis.

Commenting on the company’s performance, Calvin McDonald, Chief Executive Officer of the company, said in a statement: "Lululemon continues to see strong momentum across the entire business. I look forward to the opportunities ahead of us, and delivering on our Power of Three five-year vision."

The company added that direct to consumer net revenue increased 33 percent or 35 percent on a constant dollar basis and represented 26.8 percent of total net revenue compared to 24.3 percent for the first quarter of fiscal 2018. Gross profit was 421.7 million dollars, an increase of 22 percent, while gross margin was 53.9 percent, an increase of 80 basis points compared to the first quarter of fiscal 2018. Diluted earnings per share were 74 cents compared to 55 cents in the first quarter of fiscal 2018. The company ended the quarter with 455 stores.

For the second quarter of fiscal 2019, Lululemon expects net revenue to be in the range of 825 million dollars to 835 million dollars based on a total comparable sales increase in the low double digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of 86 cents to 88 cents for the quarter. For the full fiscal year, the company expects net revenue to be in the range of 3.730 billion dollars to 3.770 billion dollars based on a total comparable sales increase in the low double digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of 4.51 dollars to 4.58 dollars for the full year.

Picture: Lululemon website

 

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