Lululemon rallies after topping estimates for holiday quarter, posting strong guidance
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Lululemon (NASDAQ:LULU) is higher after reporting comparable sales rose 23% in FQ4 to smash the consensus mark. Comparable sales at stores were up 32%.
Revenue was up 23% during the quarter on a constant dollar basis, led by a 35% jump in international markets and 21% gain in North America.
Direct to consumer revenue rose 17% Y/Y to account for 49% of sales.
Gross margin was 58.1% of revenue vs 58.6% a year ago and 58.3% consensus. Operating margin was 27.8% of sales vs. 26.9% a year ago.
CFO Meghan Frank on the outlook: "Our results were driven by consistently strong performance across our products, channels, and regions. In addition, for both the fourth quarter and full year, we delivered revenue growth above our Power of Three goals, despite the continued impact of COVID-19 and global supply chain issues. We are pleased to see our momentum continue at the start of 2022 and are optimistic about our performance for the year ahead."
The biggest pullout from the report may be the two-year comparisons, which showed 50% revenue growth and 46% net income growth.
Looking ahead, LULU sees expect FY22 revenue of $7.490B to $7.615B vs. $7.24B and EPS of $9.15 to $9.35 vs. $9.05 consensus.
Shares of Lululemon (LULU) rose 5.18% in after-hours trading to add to the 3.72% gain during the regular session.
Lululemon (LULU) is on Seeking Alpha's Stocks to Watch list this week with the conference call expected to highlight the company's footwear launch.