Lululemon Group Gross Profit Margin Recorded 49.4% In The First Quarter.

According to the world clothing shoes and hats net, although North American advanced

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Athletica Inc. (NASDAQ:LULU) Lulu lemon recorded a 2% decline in the same store sales in the first quarter, but the market struggled in recent years.

Dare not have too high expectations, and performance in line with the group's previous expectations, the two quarter outlook exceeded market expectations, stimulating the stock rose sharply after the market.

On Thursday's closing, Lululemon's share price was $48.67, up 0.83% against the big market, after which it reported $56.50, soaring 16.09%.

In the first quarter of April 30th, Lululemon Group recorded a net profit of US $31 million 246 thousand, down 31.1% from US $45 million 336 thousand in the same period last year, and earnings per share of US $0.23, down 30.3% from 0.33 US dollars in the same period last year. After adjustment, the earnings per share were US $0.32, exceeding the Zacks analyst's expected US $0.28.

The above adjustment is mainly for the group to pform the young brand Ivivva brand into a pure e-commerce brand, and 40 of the 55 brands of the brand will be closed, and the remaining half will turn to Lululemon brand stores.

At the same time, Ivivva will close all Showroom showrooms and temporary stores. The brand restructuring plan will cost $17 million 700 thousand before tax in the first quarter, and the restructuring plan is expected to be completed at the end of the three quarter.

By the end of April, the Lululemon group's total revenue was $520 million 300 thousand, an increase of 5% over the 495 million 500 thousand quarter of the 2016 fiscal year, exceeding the Zacks analyst's forecast of $512 million 700 thousand.

FactSect expects the group's EPS and revenue forecasts to be $0.28 and $514 million in the first quarter, respectively.

Although the stock price has risen sharply, it can not hide the fact that Lululemon Group recorded the first sale decline in the same quarter in the first quarter of the 11 quarter. As of Thursday's closing, the company's share price has fallen by 26% this year.

Laurent Potdevin, chief executive of the group, said in its earnings report that its positive performance in the first quarter continued to the two quarter.

However, the group's sales and sales in the same quarter were hard to say "positive".

In the fourth quarter of fiscal year 2016, the group's fixed exchange rate registered a 7% growth in the same store, unchanged from the 2016 fiscal year.

In the annual report at the end of March, Lululemon group had a negative outlook for the same store in the past quarter. Wall Street once let the stock plummet by 18%.

Therefore, whether the group's same store sales in the two quarter can be turned to market is especially worth the market attention. However, the group only indicated that the sales volume in the two quarter was expected to be up to the median digit growth rate, which is expected for the same store sales.

In the first quarter, the gross profit margin of Lululemon group was 49.4%, an increase of 110 basis points compared with the same period last year. After adjustment, the gross profit margin of the group has greatly improved by 210 basis points, and the operating profit rate has dropped 8.7% points by 290 basis points. The adjusted 12.1% share has been improved by 50 basis points in the first quarter of the year. The group's gross profit margin was 110.

Following the criticism of the group's "colorless" products at the end of March, Laurent Potdevin again criticized the group's lack of digital culture and digital thinking mode in the first quarter earnings conference, suggesting that the group strategy lagged behind the era of electricity supplier's popularity. Its leading Ivivva pure e-business was also recite its criticisms. Previously, Miguel Almeida, the executive vice president of digital business who has served the group for less than two years, has just left.

At the earnings conference, Laurent Potdevin praised himself for the new $68 "high-tech" bra performance, which he put forward at the end of March, "should be more daring to cater for consumers' pursuit of spring products".

Lululemon group now expects the current two quarter revenue of 5.65-5.70 billion dollars, earnings per share of 0.13-0.15 dollars, adjusted earnings per share 0.33-0.35 US dollars; expected fiscal year revenue of 25.30-25.80 billion, which can be lower than the median sales growth, EPS is expected to 1.97-2.07 dollars, excluding ivivva restructuring EPS expected 2.28-2.38 dollars.

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