Lululemon
raises full-year profit, revenue forecast
Send a link to a friend
[June 09, 2015]
(Reuters) - Lululemon Athletica Inc
raised its full-year revenue and earnings forecast, the latest sign that
the Canadian yogawear retailer was recovering from the turmoil caused by
an embarrassing recall of overly sheer yoga pants in 2013.
|
The company also reported a better-than-expected profit for at least
the eight straight quarter, helping send its shares up 3.4 percent
to $63.61 in premarket trading on Tuesday.
Lululemon is in the midst of a turnaround to improve quality, expand
its product line and solve supply-chain problems, while laying the
groundwork for faster international growth.
The company has also been trying to grow its men's apparel business
in sync with its women's apparel business, while making the range
more fashionable.
"Clearly the turnaround efforts are working," said Dorothy Lakner of
Topeka Capital Markets.
The company raised its full-year earnings forecast to $1.86 to $1.91
per share from $1.85 to $1.90 and revenue forecast to $2.0-$2.05
billion from $1.97-$2.02 billion.
The profit forecast, however, was short of analysts' average
estimate of $1.93 per share, while the revenue forecast compared
with analysts' average estimate of $2.02 billion, according to
Thomson Reuters I/B/E/S.
"They are giving relatively conservative guidance, likely so they
can beat it again," Lakner said. "It's still early in the year, so
there is no reason to raise the bar too high."
Lululemon's total comparable store sales rose 6 percent on a
constant dollar basis in the first quarter ended May 3 compared with
a 1 percent increase a year earlier.
[to top of second column] |
Profit rose to $47.8 million, or 34 cents per share, from $18.98
million, or 13 cents per share. Revenue rose about 10 percent to
$423.5 million.
Analysts on average were expecting a profit of 33 cents per share on
revenue of $418.9 million.
Up to Monday's close, Lululemon shares had risen more than 10
percent this year on the Nasdaq.
(Reporting by Solarina Ho in Toronto and Amrutha Gayathri in
Bengaluru; Editing by Ted Kerr and Savio D'Souza)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
|