Lululemon (LULU) earnings Q1 2023
Lululemon reported earnings that beat Wall Street's estimates on the top and bottom lines Thursday and raised its full-year guidance, bolstered by improvements in China and freight costs.
Shares of the company surged more than 12% in extended trading.
Here's how the retailer did in its fiscal first quarter compared with what Wall Street was anticipating, based on a survey of analysts compiled by Refinitiv:
Earnings per share: $2.28 vs. $1.98 expected
$2.28 vs. $1.98 expected Revenue: $2 billion vs. $1.93 billion expected
The company's reported net income for the three-month period that ended April 30 was $290.4 million, or $2.28 per share, compared with $190 million, or $1.48 per share, a year earlier.
Sales rose 24% to $2 billion, up from $1.61 billion a year earlier.
China revenue alone grew 79% from the year-ago period, when the country was still reeling from Covid restrictions and roughly one-third of Lululemon's 71 China stores were closed for a period of time.
"Our Q1 results were strong as guests responded well to our product offering in all our markets across the globe. A meaningful acceleration in our China sales trend, coupled with lower air freight, contributed to our better than planned financial performance," CFO Meghan Frank said in a statement. "We are pleased with our momentum heading into the second quarter and for the full year as reflected in our revised outlook for FY23."
The retailer now expects to see full-year revenue of $9.44 billion to $9.51 billion, up from a previous range of $9.31 billion and $9.41 billion, and beating Wall Street's projections of $9.37 billion, according to Refinitiv. It expects full year profits of $11.74 to $11.94 per share, compared with a prior range of $11.50 to $11.72. That also topped analysts' expectations, which called for $11.61 per share, according to Refinitiv.
Lululemon is expecting second-quarter sales to be in the range of $2.14 billion to $2.17 billion, representing growth of about 15%. Lululemon expects diluted earnings per share to be in the range of $2.47 to $2.52 for the period. That second-quarter guidance was largely in line with Wall Street expectations, according to Refinitiv.
Source: CNBC
