The gradual easing of restrictions paved the way to work life, and thus less time for athletic activities. However, Lululemon left another quarter with a stellar performance.
Its quarter ended May 2 garnered $1.23 billion in revenue during its earnings call. This translates to an 88% compared to the same period in 2020.
Last year, earnings stood at the $600 million thresholds and started gaining upward momentum since then. Consequently, the result is significantly better than analysts’ expectation of $1.13 billion in Q1.
In its earnings per share performance, experts predicted a $0.91 in EPS which already is a 300% YoY jump in itself. However, the retailer proved to be the stronger man down and line and gave its investors a $1.16 EPS.
In a more detailed view, net income ballooned to $145 million as sales across all the main market niches continue to improve.
Lululemon USA recorded a significant improvement in sales, especially in-store, as vaccination continues to pave the way for greater economic stimulation.
In guidance on its performance for the second half of the year, CEO Calvin McDonald is optimistic about the future.
The leader said that the firm expects business growth in other potential geographic locations at par with its North American market. However, this far-fetched vision as an international business only accounted for 14% of its total sales by the end of last year.
On the other hand, there is so much promise on the line if it successfully penetrates other locations, especially in Asia and Europe.
Here’s How LULU Stock Reacted
Along with the positive news, LULU stock instantaneously gained 1%. On the other hand, it failed to maintain the momentum. Hence it closed Thursday with a more than 1% fall to $317.36 per share.
Nevertheless, some analysts are still optimistic about the future of the stock. In a short-term projection, a financial strategist gave it a $343.00 per share price target. This translates to roughly an 8% hike compared to its current price settlement. This is not far from becoming a reality after it recorded a 50% hike back in 2020.
The retailer plays at a relatively comfortable position in terms of cards on hand, not all hands on deck yet.
It expects its acquisition of fitness startup Mirror to bring about $250 million to $275 million in revenue for this year alone. Currently, the former is swiftly ascending to rival Peloton in the exercise equipment market.