Lululemon Athletica (LULU) shares are soaring after the fashion athletic apparel retailer reported better-than-expected holiday quarter profit and full-year guidance.
Lululemon posted fourth quarter earnings per share (EPS) of $4.40, more than $1 above the previous year's EPS and exceeding forecasts. Revenue jumped 30.3% to $2.77 billion, roughly in line with estimates.
Total comparable sales were up 27%, with comparable store sales gaining 15% and direct-to-consumer net revenue rising 37%. Inventories increased 50% from the same period in 2021, but that was well below the 85% surge in the third quarter.
The company’s performance "remained balanced across product category, channel, and regions," noted CFO Meghan Frank. She added that Lululemon remains optimistic about delivering "sustained growth and long-term value for all our stakeholders" in the future.
The retailer indicated it anticipates fiscal 2023 EPS of $11.50 to $11.72, with sales between $9.3 billion and $9.41 billion. Both exceeded analysts’ expectations.
Shares of Lululemon Athletica are up 13% as of 1 pm E.T., and with today's gains are now positive for the year.