Lululemon Athletica Inc. (NASDAQ: LULU) shares rose the most in six months as the yoga apparel company reported better-than-expected earnings and revenue on Thursday.
The shares jumped as much as 13 percent to $54.97 in the early trading in New York.
Laurent Potdevin, CEO, lululemon, said: "I'm excited to see the positive trends that materialized late in Q1 continuing into Q2. Our current outlook for the remainder of 2017 is strong, and I'm energized by the growth strategies taking shape. I'm also confident in our plans to restructure ivivva and believe they are the best means to optimize this part of the business."
The company said first-quarter sales rose 5 percent to $520.3 million, topping analysts’ estimates of $512.7 million, according to Zacks.
Excluding certain items, the company earned 32 cents a share in the first quarter, beating analysts’ projection of 28 cents per share.
"From our cadence of product innovation, to our enhanced digital experience, and first-ever global brand campaign, we have never felt more deeply connected to our guest or better positioned to expand our collective. We remain laser focused on owning our position as the global brand defining an active, mindful lifestyle." Mr. Potdevin continued.
Lululemon now expects second quarter revenue to be in range of $565 million to $570 million. Analysts surveyed by Zacks had estimated revenue of $563.2 million.