Lululemon Athletica posts strong earnings, digital sales jump
Revenue increased by 20% year over year, bringing full-year revenue to $4 billion
Stocks impacted: Lululemon Athletica (LULU)
The company reported better-than-expected sales and earnings for the fiscal fourth quarter which ended February 2, 2020. Revenue increased by 20% year over year, bringing full-year revenue to $4 billion. Higher margins boosted earnings by 23% year over year on an adjusted basis. Earnings per share came in at $2.28 on revenue of $1.40 billion versus $1.85 on revenue of $1.17 billion in the same period a year before. Comparable-store sales increased 9% and direct-to-consumer net revenue jumped 41%. Lululemon ended the quarter with nearly $1.1 billion in cash and no debt. The better-than-expected performance comes as the virus pandemic has forced the retailer to close is stores in the U.S. and other countries. At that, the company has not provided guidance for fiscal 2020, as the COVID-19 situation "remains fluid". Lululemon Athletica shares declined 1.8% in after-hours trade following the report, with stocks being down over 13% from the beginning of the year.
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