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

Mission being challenged by growing opioid crisis

Community Opioid Dialogue will be held in Mission on Thursday, Jan. 31

Man, 24, charged with nine sexual offences in Abbotsford and Mission

Alleged victim, who he met online, is under the age of 16

Mission filmmaker tackles topic of youth and the social media epidemic

Kim Laureen teams up with her daughter to create documentary film Selfless

Mission to take a closer look at clothing donation bins

Recent deaths around the country have caused some communities to ban the bins for safety concerns

Live demos and stunt shows part of Vancouver Motorcycle Show

Annual event returns to Tradex in Abbotsford from Jan. 18 to 20

Self serve doggy-wash poised to change dog grooming industry

Add money, start spraying to wash dog in the K9000

B.C. woman planned to donate a kidney to her husband, then found out she has cancer

Richard Stuart needs a kidney, his wife Tracy has been diagnosed with cancer

15 to 20 cm of snow to fall on Coquihalla

Kelowna - A snowfall warning is in effect for the highway from Hope to Merritt

Rookie Demko backstops Canucks to 4-3 win over Sabres

Young Vancouver goalie makes 36 saves to turn away Buffalo

Charges upgraded against mother of murdered B.C. girl

Kerryann Lewis now faces first- rather than second-degree murder in the death of Aaliyah Rosa.

UPDATE: Injured firefighter in stable condition

Kelowna fire crews responded to a blaze at Pope’sGallery of BC Art & Photography on Friday

Book a ride on a driverless shuttle in Surrey or Vancouver

Automated vehicle demos are being offered, as the two cities plan pilot projects with the shuttles

Heavy snowfall expected on the Coquihalla

Snowfall warning in effect for the Coquihalla Highway, from Hope to Merritt

Rare ‘super blood wolf moon’ takes to the skies this Sunday

Celestial event happens only three times this century

Most Read