Lululemon Raises Profit Outlook After Beating Q1 Earnings Expectations, Stock Up 12%

Jun 5, 2024, 08:32 PM

Lululemon Athletica reported strong first-quarter earnings, beating market expectations and raising its profit outlook for the full year. The company posted revenues of $2.21 billion, slightly above the estimated $2.2 billion, with same-store sales growth of 6.0% compared to the expected 6.4%. The gross margin was 57.7%, surpassing the anticipated 57.5%, and adjusted earnings per share were $2.54, exceeding the forecasted $2.39. Following the earnings report, Lululemon's stock rose by 12% in after-hours trading. CEO Calvin McDonald noted strong momentum in international markets. Additionally, the company announced a further share buyback. Despite the positive results, guidance for the second quarter was light. Dana Telsey of Telsey Advisory Group commented, 'They’ve been able to deliver better-than-expected numbers.'