Lululemon Athletica Inc (NASDAQ:LULU) reported financial results for the first quarter after the market close on Thursday. Here’s a rundown of the athletic apparel company’s report.
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Lululemon Q1 Earnings Highlights
Lululemon reported first-quarter revenue of $2.47 billion, beating the consensus estimate of $2.43 billion, according to Benzinga Pro. The company posted first-quarter earnings of $1.69 per share, narrowly missing estimates of $1.70 per share.
Total revenue was up 4% on a year-over-year basis as Americas net revenue decreased 3% and international revenue climbed 22%. Total comparable sales increased 1% year-over-year, boosted by international growth.
Inventories were up 2% year-over-year to $1.7 billion. Lululemon’s total store count was 816 at quarter’s end after opening five new company-operated stores during the quarter.
Lululemon exited the quarter with approximately $1.5 billion in cash and cash equivalents.
“Our work to drive improvements in North America resulted in some positive signals in the quarter, including a sequential improvement in full-price sales,” said Meghan Frank, interim co-CEO and CFO of Lululemon.
“More recently, we have been navigating headwinds that have led us to adjust our outlook for the full year. We have assessed the business and are taking additional actions to reposition where needed and further strengthen our product engine.”
What’s Next For Lululemon?
Lululemon expects second-quarter revenue of $2.45 billion to $2.48 billion, versus estimates of $2.60 billion. The company anticipates second-quarter earnings of $1.76 to $1.81 per share versus estimates of $2.71 per share.
Lululemon also lowered its full-year outlook. The company now expects full-year revenue of $11 billion to $11.5 billion, down from prior guidance of $11.35 billion to $11.50 billion. Lululemon now anticipates full-year earnings of $10.95 to $11.15 per share, down from prior guidance of $12.10 to $12.30 per share.
Lululemon’s outlook for both revenue and earnings is well below current analyst estimates.
Lululemon’s management team will further discuss the quarter on an earnings call with investors and analysts at 4:30 p.m. ET.
LULU Shares Slide After The Bell
LULU Price Action: Lululemon shares were down 9.49% in after-hours on Thursday, trading at $113.03 at the time of publication, according to Benzinga Pro.
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