Lululemon Athletica Inc (NASDAQ:LULU) , the yoga-wear maker, crushed Wall Street’s profit and revenue estimates for its fiscal first quarter due to booming online sales.
Investors welcomed the results in after-hours trading and pushed up shares of Lululemon, which have more than doubled in the last year, by 4% to US$105.05.
On a per-share basis, Lululemon earned US$0.55 on revenue of US$649.7mln. These figures trounced Wall Street’s consensus expectation of US$0.46 on revenue of US$616.3mln.
“Our momentum remains strong and we are optimistic for 2018 and beyond,” said Stuart Haselden, chief operating officer, in a statement.
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Yoga wear proved to be wildly popular in the three months until April’s end, with total comparable sales jumping 20% in the quarter from last year. But more clothes were sold online as net revenue from direct to consumer sales climbed 62%.
Lululemon ended its first fiscal quarter with US$966.6mln in cash compared with US$698.3mln at the end of last year’s first fiscal quarter.
The company expects its fiscal full-year earnings to range between US$3.10 and US$3.18, ahead of the consensus estimate of US$3.10. It also forecasts rosy revenue figures of US$3.04bn to US$3.075bn, which are way ahead of Wall Street’s projection of US$3.02bn.