The logo for Lululemon Athletica is seen outside a retail store in New York City, U.S., March 30, 2017. REUTERS/Brendan McDermid

Lululemon Athletica Inc (LULU.O) forecast full-year net revenue and profit above Street estimates on Thursday, anticipating continued demand for its workout wear despite easing COVID-19 restrictions in many of its top markets.

The health crisis and ensuing gym closures have pushed people to take up running and biking, creating a demand surge for clothing from athletic wear makers, including Lululemon, Nike Inc (NKE.N) and Under Armour Inc (UAA.N).

The home-fitness trend coupled with an increase in interest in comfortable work-from-home lounge wear has prompted apparel sellers to double down on their casual offerings, with Lululemon also launching new styles of tank tops and shorts.

The owner of Mirror home-fitness platform said it expects fiscal 2021 net revenue to be in the range of $5.83 billion to $5.91 billion, compared with its prior range of $5.55 billion to $5.65 billion.

Lululemon said it expects adjusted earnings to be between $6.73 and $6.86 per share, compared with its prior range of $6.30 to $6.45.

Analysts on average were expecting earnings of $6.48 per share on net revenue of $5.68 billion, according to IBES data from Refinitiv.

For the first quarter, Lululemon’s net revenue rose 88% to $1.23 billion from a year earlier, as sales at stores that Lululemon operates more than doubled. Analysts on average had expected net revenue of $1.13 billion.

Excluding items, Lululemon earned $1.16 per share, above estimates of 91 cents.

“Our first quarter results reflected strength across all drivers of growth, fueled by the continued expansion in our e-commerce business and a rebound in brick-and-mortar stores,” Chief Executive Officer Calvin McDonald said.

Shares in the yogapants maker jumped 1% in extended trading.

Our Standards: The Thomson Reuters Trust Principles.

Source: https://www.reuters.com/business/retail-consumer/lululemon-beats-quarterly-revenue-estimates-2021-06-03/

You May Also Like

EXCLUSIVE Abu Dhabi’s ADNOC weighs IPO of logistics and services unit next year- sources

State oil firm Abu Dhabi National Oil Company (ADNOC) is weighing an initial public offering (IPO) of its marine services, logistics and shipping arm next year, two sources familiar with the matter told Reuters.

Race to find survivors as death toll in Miami condo collapse rises

Rescue workers frantically scoured the rubble of a collapsed apartment block in a Miami suburb for signs of life on Friday, as the death toll from the disaster crept up and as nearly 100 people remained unaccounted for.