On Tuesday, Lululemon Athletica reported its robust fiscal fourth-quarter results, which surpassed analysts’ expectations. Its stock price went up by 0.97% to $320.31 per share on March 28. Also, it is expected to rise by 13.02% to $362.00 apiece in the upcoming session.
The company’s earnings per share jumped to $4.40, beating the experts’ $4.26 forecast. Therefore, it is better than the previous $2.00 data. Likewise, the revenue of Lululemon rose to $2.80 billion, exceeding the $2.70 billion consensus. As a result, it is higher than the prior $1.90 billion figures.
Furthermore, the athletic apparel maker reported a profit of $854.80 million or $6.68 per share for the year. The revenue hit $8.11 billion.
The firm said that it looks forward to an improved income. It is within the range of $1.89 billion to $1.93 billion for its current quarter ending in April. However, markets expect a lower profit worth $1.73 billion. In addition, Lululemon anticipates its full-year earnings to hit $11.50 to $11.72 a share.
On the other hand, gross margins dropped 300 basis points to 55.10%. The adjusted gross margin plunged 70 basis points, equating to a 57.40% slide. This came after the Q3 inventories had an 85.00% leap.
Last week, Lululemon stock recovered the 50-day moving average and topped the 200-day line on Monday.
Mirror Charge of Lululemon Absorbed
Activewear brand, Lululemon remains resilient, having a $442.70 million after-tax charge against its Mirror acquisition in 2020. This move promotes growth elsewhere in the company’s loyalty program and revenues.
The firm kept going strong for years and logged high income in Q4. Investors liked the improvement and hit its shares by 9.90% to a $351.85 rise.
Meanwhile, Mirror showed it is a rare stumble, contributing to the apparel store’s increasing loyalty program.
Lululemon CEO Calvin McDonald dealt with the misstep and explained the company’s rationale for working with the agreement. He noted that the firm tested a paid city-based membership program which he promised to bring great results.