Lulu Lemon Grew 20% In The First Quarter, Raising Annual Performance Expectations

On June 13th, LULU.US, the sportswear company, raised its expected performance in the financial year after the company said its online sales and sales growth of its core bottoms and jogging trousers boosted its performance in the latest financial year.

Affected by this, the company's share price rose nearly 5% after the session.

The company's net income in the first quarter was $782 million 300 thousand, an increase of 20% over the same period last year, higher than analysts' previous forecast of $756 million.

Online sales grew by 33%, accounting for nearly 27% of total quarterly revenue.

Same store sales (that is, store sales for at least one year) increased by 6%.

The company opened 455 stores at the end of the quarter.

"Lulu lemon continues to maintain a strong momentum in the whole business area," said CEO Calvin of the company, Calvin.

The company's net profit in the first quarter was $96 million 600 thousand, or $0.74 per share, compared with $75 million 200 thousand in the same period last year, plus $0.55 per share.

Analysts surveyed by FactSet expect 71 cents per share.

Lulu lemon said on Wednesday that it expects net revenue of $3 billion 730 million to $3 billion 770 million a year, which was expected to be between $3 billion 700 million and $3 billion 740 million.

The company also expects earnings per share of $4.51 to $4.58 this year, compared with the previous estimate of $4.48 to $4.55.

Lulu is expected to earn $825 million to $835 million in the quarter, while analysts expect it to be $835 million.

The company also predicts that comparable sales will grow at a low two digit percentage on a fixed dollar basis.

The company expects earnings per share to be 86 cents to 88 cents, while analysts estimate it will be 88 cents.

Lulu lemon rose 4.68% on Wednesday after trading, to $178.88.

In the past 12 months, the company's share price has risen by about 37%.

In April, Macdonald, the new chief executive of the clothing manufacturer, said the brand had no plans to cut prices, though the market was now flooded with cheaper alternatives and cottage products.

Macdonald said at the time that Lulu lemon was planning to launch a series of new products from deodorant to sports shoes.

He also expressed the hope that the brand would be promoted to international markets such as Europe and China.

Patrick Guido, the first financial officer of Lulu lemon, told analysts at a conference call that the gross profit margin of the company has improved in the last quarter, partly due to a reduction in its price.

As part of the company's five year plan, Lulu lemon is seeking to double its male and digital business revenues and increase its international sales by four times.

Macdonald told analysts that in the new product, the company plans to launch new vests and T-shirts for men with anti odor technology, lightweight and strategic exhaust function.

He said the company plans to launch another two high brace bra in the coming months.

Lulu lemon executives said the company had strong momentum in the international market.

Hazel den, chief operating officer of the company, said that the company is still expected to open 10 to 15 stores in China this year and expects to achieve strong growth in China this year, Stuart Haselden.