Vancouver leisurewear retailer Lululemon Athletica Inc. (Nasdaq:LULU) saw its share price spike after hours today, when its first-quarter earnings report beat analyst expectations.
The company reported that it earned US$2.28 per share - up 54 per cent, and US$0.29 more than analysts had on average been expecting. The company's sales rose 24 per cent to be about US$2 billion in the quarter, which was about US$80 million more than analysts had been expecting.
In the current quarter, Lululemon expects revenue to be in the range of US$2.140 billion to US$2.170 billion, which would be an increase of about 15 per cent. It expects diluted earnings per share in the quarter to be in the range of US$2.47 to US$2.52, although that does not reflect potential future share repurchases, the company said in a release.
In the full year of 2023, Lululemon expects revenue to be in the range of US$9.440 billion to US$9.510 billion.
CEO Calvin McDonald hailed what he called "strong financial performance and continued momentum."
He attributed the results to "the strength of our guest relationships, our innovative products and how our brand resonates across the globe."
The company's CFO Meghan Frank added that the improved performance stemmed from "a meaningful acceleration in our China sales trend, coupled with lower air freight."
Lululemon intends to hold a conference call with analysts at 1:30 p.m. Vancouver time.
Lululemon shares closed trading June 1 down 1.08 per cent, at US$328.35. Shares then climbed 11.62 per cent to US$366.50 by 1:30 p.m. Vancouver time.