VANCOUVER, Canada — Lululemon Athletica Inc.’s sales accelerated faster than expected last quarter, easing concerns that its CEO shuffle will disrupt its performance.
The yogawear maker posted comparable-sales growth of 11 percent when accounting for currency effects and direct-to-consumer channels. The report, which also showed quarterly revenue and profit beat estimates, sent Lululemon shares up as much as 9.8 percent in extended trading.
Lululemon is pushing to create more innovative products, attract more male customers and expand internationally. But the February resignation of Laurent Potdevin, who the company said behaved unprofessionally, has threatened to distract from these efforts. With competition fiercer than ever — Amazon.com Inc. and Nike Inc. are increasingly targeting Lululemon’s market niche — maintaining focus will be a key challenge for the company.
Against that backdrop, the latest results signal that the company’s plan is on track. Excluding some items, profit was $1.33 a share, topping analysts’ average estimate of $1.27. Sales were $928.8 million in the quarter, which ended Jan. 28. That beat the estimate of $912.4 million.
The shares rose to as high as $86.40 in late trading Tuesday. The stock has been flat this year after rising 21 percent in 2017.
Analysts had expected same-store sales to increase 8.6 percent when excluding currency effects, according to Consensus Metrix.
By Lindsey Rupp in New York; Editors: Nick Turner, Jonathan Roeder, Lisa Wolfson.