Athletic apparel-maker, Lululemon Athletica (LULU) announced its quarterly earnings as firms profit and revenue in the last quarter topped analyst’s prediction and the firm also increased its earnings forecast, as the designer showed robust progress amid a stiff competition.
VANCOUVER, BC-based Lululemon Athletica inc.(NASDAQ:LULU), is considered as a pioneer of the athleisure style in which yoga pants and workout gear are worn as trendy attire. The company in the recent time has faced worries of a saturated market. In the result the earnings beat came an encouraging sign for stockholders after a series of missing analysts’ estimates.
Meanwhile the firm posted better than anticipated same-store sales growth of 4%, as analysts were expecting same-store sales growth 2.7%. Including online, same-store sales surged 7%, as direct-to-consumer net revenue augmented 16% to $104 million.
Company’s Chief Executive Laurent Potdevin said the Lululemon has an outlook of much better results from the holiday shopping season. The company has had to defy rising rivalry in the athleisure market from traditional sportswear companies as well as plenty of newcommers.
“As we entered the fourth quarter, we experienced mixed sales results that have since improved,” Mr. Potdevin said in prepared remarks.
In the 3 three month period ending in October, Lululemon’s gross margin was 51.1%, up from 46.9% year over year. The margin has been down 50% for five of the past seven three month periods.
Including everything, Company had earnings of $68.3 million, or 50 cents a share, in contrast with $53.2 million, or 38 cents a share, year over year.
In the fiscal third quarter, net revenue surged 13% to $544.4 million. However the company forecasted for earnings in a range of 42 cents to 44 cents a share. While analysts polled by Thomson Reuters predicted $540 million in revenue.
Moreover Lululemon Athletica (NASDAQ:LULU) announced that its board of directors has sanctioned a $100 million share buyback program.