Lululemon (NASDAQ: LULU), an athletic apparel company, reported strong first-quarter earnings on Thursday, as restrictions in the country ease. Revenue surged 88%, surpassing analysts’ estimates and the company’s stock rose 1% during extended trading.
The retailer reported earnings of USD1.16 per share, compared to the expected USD0.91 a share. Revenue amounted to USD1.23 Billion, higher than analyst anticipated USD1.13 Billion. Furthermore, Net income climbed to USD145 Million from the previous year’s USD28.6 Million.
Lululemon CEO Calvin McDonald stated: “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. Our strong performance across categories, channels and geographies demonstrates the momentum and strength of lululemon as we shift into the new normal. All of us on the leadership team are grateful to our teams around the world who enabled these results, and who continue to focus on realizing growth.”
Throughout the last two years, sales increased 57%. Additionally, according to Lululemon, its men’s division had grown faster from 2019 levels compared to its women’s. Ultimately, amid the pandemic, demand for fitness wear dramatically increased. Similarly, companies such as Nike and Under Armour have also benefited from the trend.
The retailer is owner to the at-home fitness platform Mirror, competitor to Peloton. Lululemon believes Mirror will produce anywhere between USD250 Million and USD275 Million in revenue in 2021.
Lululemon shares have fallen 9% year to date and has a current market cap of USD41.4 Billion.