Lululemon shares surge after forecast increase, earnings beat expectations

The stock rise came after Vancouver-based clothing company reported net income of US$75.2 million

Shares of Lululemon Athletica Inc. surged Friday after the company beat expectations in its latest results and increased its earnings outlook for the year.

The company’s share price climbed US$17.14 or 16.32 per cent to close at US$122.19 on the Nasdaq to hit an all-time high.

The stock rise came after the Vancouver-based clothing company reported net income of US$75.2 million in the quarter ending April 29, beating analyst expectations of US$61.3 million according to Thomson Reuters Eikon. It was also a big increase from the US$31.3 million for the same quarter last year.

The yoga and athletic-focused retailer also increased its diluted earnings per share expectations to between US$3.10 and US$3.18 from the US$3 to US$3.08 it had forecast in March.

The strong earnings come as the company reported sales growth in both its stores and online, including an eight per cent increase in comparable store sales and a 62 per cent increase in direct to consumer revenue which includes online sales.

Retail analyst Neil Saunders says the online sales boost can be attributed to a relaunched website, while overall the company continues to innovate on products and has significant growth potential including with its menswear offerings.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

The man who gave up law school to work in a homeless shelter

Joshua Medcalf is keynote speaker for 2018 Leadership Superconference at Langley Events Centre

Langley students get an education in entrepreneurship

Young Entrepreneur Leadership Launchpad program gives students hands-on experience

Man who abducted and assaulted 11-year-old Langley girl has parole rules tightened

Brian Abrosimo made ‘inappropriate and sexualized’ comments

VIDEO: Langley-based Fraser Valley Fusion 2002A crowned champions in Oregon

Fastpitch team takes Triple Crown Sports Valley South 16U Tournament in Medford

‘Police are ready’ for legal pot, say Canadian chiefs

But Canadians won’t see major policing changes as pot becomes legal

Naked man jumping into Toronto shark tank a ‘premeditated’ stunt: official

The man swam in a tank at Ripley’s Aquarium of Canada

Mega Millions prize of $654M is nation’s 4th-largest

No one has won the U.S. jackpot in almost three months

Pot shop raids “highly unlikely” on Wednesday: head of police chiefs

Dozens of illegal pot stores have operated for years in Vancouver, Victoria and other municipalities in B.C.

Trump: Saudi king ‘firmly denies’ any role in Khashoggi mystery

Secretary of State Mike Pompeo is travelling to the Middle East to learn more about the fate of the Saudi national

Microsoft co-founder Paul Allen dies at 65

Allen died in Seattle from complications of non-Hodgkin’s lymphoma

Transport Canada to take new look at rules, research on school bus seatbelts

Canada doesn’t currently require seatbelts on school buses

Sockeye run in Shuswap expected to be close to 2014 numbers

Salute to the Sockeye on Adams River continues until Sunday, Oct. 21 at 4 p.m.

Michelle Mungall’s baby first in B.C. legislature chamber

B.C. energy minister praises support of staff, fellow MLAs

Canucks: Pettersson in concussion protocol, Beagle out with broken forearm

Head coach Travis Green called the hit ‘a dirty play’

Most Read