Shares of Lululemon Athletica Inc. climbed 4.4 percent in trading Friday after it said it posted a triple win as profits, revenues and comparable-store sales all posted double-digit gains for the first quarter.
The firm also raised its full-year guidance as it provided second-quarter projections above Wall Street’s expectations.
For the three months ended May 1, income attributable to Lululemon rose 70.4 percent to $33.4 million, or 46 cents a diluted share, from $19.6 million, or 27 cents, last year. The EPS performance beat the analysts’ consensus estimate of 38 cents a share by 8 cents.
Total revenues rose 35 percent to $186.8 million from $138.3 million. The company said comps increased 16 percent on a constant dollar basis. The Vancouver, British Columbia-based company said direct-to-consumer revenue rose 51 percent in the quarter to $13.8 million, representing 7.4 percent of total company sales.
Christine Day, chief executive officer, said, “Given our inventory constraints combined with our focus on transitioning our e-commerce platform, we approached the plan for the first quarter conservatively. However, thanks to our strong partnerships with our manufacturers, we were able to source additional inventory for April and maximize the productivity of the inventory we had to work with both in sales and gross profit dollars.”
Day said the company saw a relatively “smooth transition” of its e-commerce platform in-house.”
She also told analysts that “new fabrics, construction and styling are how we continue to evolve our core lines.” The company’s plan is to open 30 new stores in 2011.
Christopher Ladd, senior vice president for global e-commerce, said that the firm over the next few months will focus on laying out key projects and initiatives for scale and growth, noting that some sectors that will predominate will be in the social, mobile and international areas.
The company is expecting second-quarter earnings in the range of 42 cents to 44 cents a diluted share on a revenue range of $200 million to $205 million. Prior to the provision of guidance, analysts on average expected EPS of 40 cents with sales of about $197.5 million.
For the full fiscal year, Lululemon now expects EPS of between $2.10 and $2.16 with revenues of $915 million to $930 million, up from prior estimates of $1.90 to $2.00 a share on revenues of $885 million to $900 million.
Shares closed Friday at $89.94, up $3.80, as the S&P Retail Index fell 1.7 percent to 496.76.