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Lululemon Q1 sales rise nearly 90% as foot traffic returns

By Claudia Assis

Lululemon Athletica Inc. stock rose in after-hours trading Thursday after the retailer reported a first-quarter profit above Wall Street expectations, seeing a rebound in store traffic and a still-strong e-commerce business.

Lululemon (LULU) said it earned $145 million, or $1.11 a share, in the quarter, compared with $28.6 million, or 22 cents a share, in the year-ago quarter.

Adjusted for one-time items, Lululemon earned $1.16 a share, compared with 23 cents a share a year ago.

Sales rose 88% to $1.23 billion, the company said, with direct-to-consumer sales representing 44% of total sales in the quarter compared with 54% for the first quarter of 2020.

Analysts polled by FactSet expected the athleisure apparel maker to report adjusted earnings of 91 cents a share on sales of $1.13 billion.

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," Lululemon Chief Executive Calvin McDonald said in a statement.

Sales of activewear and casual wear have skyrocketed amid the pandemic and work-from-home trends. Gap Inc. (GPS) last week reported higher-than-expected sales in part due to higher demand for activewear and summer fashions (link).

Lululemon guided for second-quarter sales between $1.30 billion and $1.33 billion, and EPS between $1.05 and $1.10 for the quarter.

Adjusted EPS is expected to be between $1.10 and $1.15, the company said.

For full-year 2021, Lululemon said it expects sales between $5.825 billion and $5.905 billion, and adjusted EPS between $6.73 and $6.86.

-Claudia Assis; 415-439-6400; AskNewswires@dowjones.com

 

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06-04-21 0754ET

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