Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Lululemon First-Quarter Profit Beats Expectations

The Canadian athletic apparel maker posted first-quarter profit that beat expectations, as revenue jumped 25 percent.
Source: Lululemon Athletica
By
  • Reuters

VANCOUVER, Canada — Canadian athletic apparel maker Lululemon Athletica Inc posted first-quarter profit that beat expectations on Thursday as revenue jumped 25 percent, sending the company's shares to an all-time high in after-hours trade.

Second-quarter earnings are expected to be between 46 and 48 cents per share on revenue of $660 million to $665 million, the Vancouver-based company said in a statement. That compares with per-share adjusted earnings of 39 cents on revenue of $581.05 million a year earlier.

The stock surged 6.2 percent to $111.51 in after-hours trading, surpassing an intraday record set on Tuesday. That followed a 0.55 percent decline during the day, as the broader S&P 500 index dropped 0.7 percent.

Lululemon, which popularized “athleisure wear” by turning pricey women’s yoga wear into mainstream fashion, is navigating a move by consumers to online shopping and growing competition from rivals including Under Armour Inc and Nike Inc. It has fought back by investing in its e-commerce platform and expanding its men’s offerings.

ADVERTISEMENT

A 62 percent increase in revenues from its direct-to-consumer business, which includes online sales, helped drive earnings to 55 cents per share in the quarter ended April 29, compared with analyst estimates of 46 cents, and up from 23 cents a share a year earlier.

Revenue increased to $649.7 million, up from $520.3 million a year ago. Analysts had expected $617.7 million.

The company did not provide an update in the statement about its search for a new chief executive officer following Laurent Potdevin's abrupt departure in February on undisclosed charges of misconduct.

By Nichola Saminather; editors: Leslie Adler and Lisa Shumaker.

In This Article

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Financial Markets
A financial lens on the fast-changing fashion sector, including markets, investors and deals.

The Best of BoF 2023: Diversity’s Litmus Test

In 2020, like many companies, the $50 billion yoga apparel brand created a new department to improve internal diversity and inclusion, and to create a more equitable playing field for minorities. In interviews with BoF, 14 current and former employees said things only got worse.


The Year Ahead: The Future of Fashion Deal-Making

For fashion’s private market investors, deal-making may provide less-than-ideal returns and raise questions about the long-term value creation opportunities across parts of the fashion industry, reports The State of Fashion 2024.


The Investment Giant Behind Some of Fashion’s Biggest Deals

L Catterton, the private-equity firm with close ties to LVMH and Bernard Arnault that’s preparing to take Birkenstock public, has become an investment giant in the consumer-goods space, with stakes in companies selling everything from fashion to pet food to tacos.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
The Business of Beauty Global Awards - Deadline 30 April 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
The Business of Beauty Global Awards - Deadline 30 April 2024