Lululemon Athletica Inc (NASDAQ: LULU) reported its first quarter financial results and topped analysts’ estimates, sending shares 17.6 percent higher midday on Friday.
For the first quarter, Lululemon reported revenue of $649.7 million, increasing 25 percent year over year and topping analysts’ estimates of $616 million. The company reported an adjusted EPS of 55 cents, surpassing estimates of 46 cents.
Total comparable sales increased by 20 percent. Comparable store sales increased by 8 percent, while direct to consumer net revenue increased by 62 percent.
Gross profit increased by 34 percent to $344.7 million. Income from operations was $104.3 million, increasing 130 percent year over year.
"We are pleased with our continued strong results for the first quarter of 2018. This successful start to the year reaffirms our strategic priorities and I would like to thank our team for their passion and commitment to connecting with guests around the world." said Glenn Murphy, Executive Chairman of the Board.
For the second quarter, Lululemon forecasts revenue in the range of $660 million to $665 million. Diluted EPS is expected to be in the range of 46 cents to 48 cents. For the full year, the company forecasts revenue in the range of $3.04 billion to $3.07 billion and diluted EPS of $3.10 to $3.18.