Lululemon shares surge after forecast increase, earnings beat expectations

The stock rise came after Vancouver-based clothing company reported net income of US$75.2 million

Shares of Lululemon Athletica Inc. surged Friday after the company beat expectations in its latest results and increased its earnings outlook for the year.

The company’s share price climbed US$17.14 or 16.32 per cent to close at US$122.19 on the Nasdaq to hit an all-time high.

The stock rise came after the Vancouver-based clothing company reported net income of US$75.2 million in the quarter ending April 29, beating analyst expectations of US$61.3 million according to Thomson Reuters Eikon. It was also a big increase from the US$31.3 million for the same quarter last year.

The yoga and athletic-focused retailer also increased its diluted earnings per share expectations to between US$3.10 and US$3.18 from the US$3 to US$3.08 it had forecast in March.

The strong earnings come as the company reported sales growth in both its stores and online, including an eight per cent increase in comparable store sales and a 62 per cent increase in direct to consumer revenue which includes online sales.

Retail analyst Neil Saunders says the online sales boost can be attributed to a relaunched website, while overall the company continues to innovate on products and has significant growth potential including with its menswear offerings.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Chilliwack is home to Sasquatch, the first Canadian-designed hops plant

Created by Hops Connect, the Sasquatch hop is the country’s first patented hops plant

Retro meets modern design with idea for iconic Paramount sign

Proposed Paramount Project plans for downtown Chilliwack unveiled Monday

B.C. declares state of emergency as more than 560 wildfires rage

This is only the fourth state of emergency ever issued during a fire season

Flight Fest to take off in Chilliwack once again

After a year-long break, Flight Fest is returning to the Chilliwack airport

Interim GoFundMe payments approved in Humboldt Broncos crash

$50,000 to be given to each of the 13 survivors and each family of the 16 people who died

Altidore nets 3 as Toronto drubs Whitecaps 5-2

Vancouver falls 7-4 on aggregate in Canadian Championship final

Ottawa intervenes to get B.C. ball player, 13, to Little League World Series

Before immigration issue was resolved, Dio Gama was out practicing the game he loves Wednesday

Pet goldfish invades small B.C. lake

Pinecrest Lake is located between Whistler and Squamish

Metro Vancouver water reservoirs in ‘good shape’

Reserves sitting at 70-per-cent full, officials said, despite long stretch without major rain

Mounties deployed to help B.C. communities affected by wildfires

RCMP officers heading to places particularly within central, northern and southern B.C.

Chinese medicine practitioner in B.C. facing historical sex assault charges

71-year old Kit Wong practiced acupuncture from his home during the time of the assaults

Quebec sets aside $900 million for companies hurt by U.S. tariffs

Premier Philippe Couillard says his government will make $863 million available over five years

Most Read