Shares of Lululemon edged higher on Friday’s pre-market trading as customers continued to spend despite the multi-decade high inflation.
The Canadian athletic apparel retailer gained 1.79% or 5.42 points to $308.00 per share. It extended its earlier upturn of 4.35% or 12.62 points to $302.58 per share. As a result, the firm added $821.88 million to the stock’s valuation.
Lululemon CEO Calvin McDonald stated that their customers ignored the higher prices on the retailer’s leggings and sports bras.
Accordingly, the company reported better-than-expected fiscal first-quarter earnings. The latest results received strength from the double-digit growth online, and the nascent men’s division.
Subsequently, revenue advanced roughly 32.00% year-over-year to $1.61 billion, outpacing the average market estimate of $1.53 billion.
Then, its earnings grew to $1.48, above the expected $1.43 per share. In addition, same-store sales soared 28.00% from the prior year, above the forecasted 20.40%.
Lululemon’s upturn joins a group of retailers, including Levi Strauss & Co., Nordstrom, and Macy’s the high-end Bloomingdales division. These companies lured shoppers with enough extra money to splurge on new clothes and accessories amid higher consumer prices.
Lululemon raises full-year outlook
Moreover, Lululemon increased its financial outlook for fiscal 2022, anticipating the momentum in its business to continue. This upbeat prospect is despite the broader economic headwinds, including red hot inflation and the disrupted supply chain.
It now sees sales for the current year in a range of $7.61 billion to $7.71 billion. It is above the prior forecast of $7.49 billion to $7.62 billion. In addition, the outlook exceeded the analysts’ consensus of $7.54 billion.
Consequently, Lululemon projects to earn, on an adjusted basis, between $9.35 and $9.50 per share. This guidance is up from the previous range of $9.15 to $9.35 per share. Meanwhile, experts look for earnings of $9.28 per share.
