Lululemon Athletica Inc. delivered a first-quarter earnings beat and lifted its guidance for the fiscal year as shoppers around the world appeared to return to stores and continued to spend online.
For the three months ended May 2, the Vancouver, Canada-based company posted adjusted earnings of $1.16 per share, compared with the prior year’s earnings of 23 cents per share. The figure blasted past Wall Street’s predictions of 91 cents in earnings per share. Revenues increased 88% to $1.2 billion, versus consensus bets of $1.13 billion.
According to the chain, company-operated stores’ sales surged 106% to $536.6 million, while direct-to-consumer — which represented 44.4% of total net revenues — recorded a 55% hike to $545.1 million. In North America, revenues climbed 82%, while its international business jumped 125%.
“Our first-quarter results reflected strength across all drivers of growth, fueled by the continued expansion in our e-commerce business and a rebound in brick-and-mortar stores,” CEO Calvin McDonald said in a statement. “Our strong performance across categories, channels and geographies demonstrates the momentum and strength of Lululemon as we shift into the new normal.”
Lululemon also brought up comparisons to 2019: It reported revenues that improved 57%, or by $444.2 million, representing a two-year compound annual growth rate of 25%. Its adjusted earnings per share were also well above the 74 cents logged in the first quarter two years ago.
“We are very pleased with our Q1 results, which reflect significant growth in the business compared to both 2020 and 2019,” said CFO Meghan Frank, who added that the athleticwear brand’s momentum “remains strong” as it enters the second quarter. “The strength of our financial position allows us to continue to deliver against the Power of Three growth strategies, while we leverage both near- and long-term opportunities.”
The results allowed Lululemon to boost its estimates for the fiscal year: For 2021, it anticipates revenues in the range of $5.825 billion to $5.905 billion and adjusted earnings per share between $6.73 and $6.86. Next quarter, it projects adjusted EPS from $1.10 to $1.15, with revenues in the range of $1.3 billion to $1.33 billion.
The company ended the first quarter with $1.2 billion in cash and equivalents, while the capacity under its committed revolving credit facilities totaled $397.3 million. As of 4:30 p.m. ET, its stock was up 0.5% to $319.