Lululemon's earnings, sales and outlook jump as China sales soar

Key takeaways

  • Lululemon& #39;s earnings and revenue beat estimates.
  • Sales in China soared after COVID-19 restrictions were lifted.
  • The retailer increased its full-year profit and sales forecast.
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Shares of Lululemon Athletica (LULU) soared in early trading on Friday after the fashion sportswear maker posted better than forecast and raised its forecasts.

Lululemon reported earnings per share (EPS) by $2.28 in the first quarter of fiscal 2023, and revenue jumped 24% to $2 billion. Both were above expectations. Same-store sales increased 13% and net direct-to-consumer revenue increased 16%.

The company enjoyed booming sales in China, which soared 79% from a year earlier, when COVID-19 restrictions temporarily closed around a third of its stores there.

Chief Financial Officer Meghan Frank explained that alongside gains from China, results were boosted by lower airfreight costs. She added that customers “have responded well to our product offering in all of our markets around the world.”

Lululemon now sees the Full-year revenue of $9.44 billion to $9.51 billion, up from its previous outlook of $9.31 billion to $9.41 billion. He expects EPS to be $11.74-$11.94 from the previous estimate of $11.50-$11.72. It was also more than analysts had expected.

Lululemon Athletica shares were 12% higher at 11:20 a.m. ET Friday.



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