Lululemon (LULU) reports Q1 2021 earnings

Pedestrians putting on protective masks wander previous a Lululemon shop in San Francisco, California, on Monday, March 29, 2021.

David Paul Morris | Bloomberg | Getty Photos

Lululemon Athletica mentioned Thursday its fiscal 1st-quarter income soared 88%, topping analysts’ estimates, as shopper targeted visitors steadily rebounded to its suppliers.

The athletic apparel maker also issued a sturdy forecast for its fiscal second quarter and raised complete-12 months estimates, indicating momentum for its brand is escalating across all geographies.

Its stock rose less than 1% on the news in prolonged investing.

Here’s how Lululemon did for the interval finished May possibly 2, in contrast with what analysts were being anticipating, based on a Refinitiv study:

  • Earnings for every share: $1.16 altered vs. 91 cents envisioned
  • Profits: $1.23 billion vs. $1.13 billion anticipated

Net cash flow grew to $145 million, or $1.11 for every share, from $28.6 million, or 22 cents per share, a calendar year before. Excluding just one-time rates, Lululemon acquired $1.16 a share, greater than the 91 cents per shares that analysts believed.

Revenue rose to $1.23 billion from $652 million a 12 months before, when its merchants were briefly shut. That arrived in ahead of anticipations for $1.13 billion.

On a two-calendar year basis, product sales grew 57%. Lululemon also mentioned its men’s small business grew more quickly from 2019 amounts than its women’s.

The Covid pandemic has fueled shopper demand for health gear to wear close to the dwelling and to gown for at-residence exercise routines these types of as managing and spin biking. The development, which hasn’t appeared to gradual down, has benefited organizations including Lululemon, Nike and Underneath Armour. It has also boosted much more traditional stores these as Gap, which not too long ago said activewear revenue go on to travel profits at equally its Athleta and Aged Navy banners.

Lululemon’s immediate-to-consumer earnings climbed 55% to $545.1 million 12 months in excess of yr. Income in North The usa were being up 82% and increased 125% internationally.

CEO Calvin McDonald advised analysts Thursday that Lululemon still expects its intercontinental organization will expand in measurement to be equal to its North American functions in the close to future. At the end of 2020, intercontinental sales represented only 14% of Lululemon’s complete company.

The company also owns the at-house conditioning platform Mirror, a rival to Peloton. Lululemon expects Mirror to drive between $250 million and $275 million in revenue this yr.

CFO Meghan Frank claimed momentum has remained strong in new weeks. The enterprise proceeds to make investments in modern merchandise to drum up exhilaration. It not too long ago introduced a line of products that use lessen-affect dyes, and it is piloting a trade-in and resale program.

For its fiscal second quarter, Lululemon expects adjusted earnings for every share to be in a range of $1.10 to $1.15, on profits of $1.3 billion to $1.33 billion. Analysts experienced been searching for earnings of $1.01 per share on profits of $1.20 billion, in accordance to a Refinitiv survey.

For the year, it is contacting for adjusted earnings of $6.73 to $6.86 for each share, on gross sales of $5.83 billion to $5.91 billion. Analysts anticipated it to get paid $6.48 for every share on profits of $5.68 billion.

Beforehand, Lululemon experienced been contacting for fiscal 2021 income to be in a range of $5.55 billion to $5.65 billion.

“We had been accomplishing nicely prior to the pandemic, I feel we led the peer team in the course of the pandemic, and we are thrilled about … our skill to continue to perform article-pandemic,” McDonald explained.

Lululemon shares are down about 9% 12 months to date. It has a current market cap of $41.4 billion.

Locate the full earnings push release from Lululemon in this article.