Premium yoga pants are still in high demand if Lululemon’s holiday quarter earnings are any indication.
For the period ended January 28, the Vancouver-based company posted revenue of $2.77 billion, up from $2.13 billion a year earlier and ahead of Street expectations of $2.7 billion. Earnings were $4.40 per share, compared to $3.37 a year earlier and analyst projections of $4.26. Total comparable sales for the fourth quarter increased by 27%.
Lululemon stock surged nearly 15% to $366.37.
Investors were also impressed by the athleisure company’s guidance.
The company expects fiscal 2023 revenue between $9.3 billion and $9.41 billion, more than Street expectations of $9.14 billion. Lululemon projects full-year profit between $11.50 and $11.72 per share, compared with Refinitiv estimates of $11.26 per share.
“Looking ahead, we remain optimistic regarding our ability to deliver sustained growth and long-term value for all our stakeholders,” chief financial officer Meghan Frank said in a statement.
In December, Lululemon said inventories at the end of its third quarter were up 85% year-over-year. The company said Tuesday that as of the end of 2022, inventories were up 50%.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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