Vancouver—Lululemon reported today better-than-expected quarterly results on its online and in-store sales strengthened. As a result, the yoga-oriented specialty store increased its second quarter and full-year forecasts.
For the quarter ended May 1, the company posted income of $33.4 million, or 46 cents a share, up from year-ago profit of $19.6 million, or 27 cents a share. Analysts’ average estimate expected earnings of 38 cents a share.
Revenue increased to $186.8 million from $138.3 million as comparable-store sales were up 16%.
“While cautious about the macro-environment, we remain confident that our business momentum will continue,” Christine Day, ceo, said.
Inventory Levels ‘Less Than Optimal’
Due to that momentum, Lululemon now expects its second-quarter earnings to hit 42 cents to 44 cents a share on revenues of $200 million to $205 million. For its fiscal 2011, the company now forecasts earnings of $2.10 to $2.16 a share, on revenue of $915 million to $930 million.
Despite the stronger profit growth was more sluggish than in previous quarters—when the retailer had reported revenues that had doubled–but the slowdown had been expected
Lululemon had previously said it anticipated slower growth in the first months of 2011 as it struggled to keep enough up with inventory levels as consumer demand increased. When the retailer warned that inventory flow is “still less than optimal” some analysts lowered expectations for the Canadian company’s growth.
The company operates about 140 stores in Canada, the United States and Australia, not including community-oriented showrooms that offer fitness classes and incorporate local events.
Earlier this week, Lululemon shareholders approved a plan to split its stock on a two-for-one basis.