Lululemon reports strong Q1 2023 results, shares rise 13%.

Lululemon Athletica Inc (NASDAQ: LULU), a Canadian company that sells athletic apparel worldwide, announced its financial results for the first quarter (Q1) of fiscal year 2023 on June 1. The company’s revenue for the quarter was $2 billion, exceeding the expected amount of $1.93 billion from analysts surveyed by REFINITIV. Lululemon Athletica’s earnings per share (EPS) for the quarter were $2.28, higher than the expected EPS of $1.98 from analysts surveyed by REFINITIV. As a result, the company’s shares rose by approximately 13.29 percent during after-hours trading on Thursday, trading around $372.

The company, which is valued at $43.96 billion, has seen a stock market gain of approximately 3 percent year-to-date, according to the latest market data.

Closer Look at Lululemon Athletica Q1 2023 Highlights

In the Q1 announcement, Lululemon Athletica reported a net income of $290.4 million, or $2.28 per share, compared to $190 million or $1.48 per share during the same period last year. Calvin McDonald, the Chief Executive Officer, noted that the company has invested significantly in innovative products and quality relationships with customers worldwide.

“This year we celebrate our 25th anniversary, and our community-based model remains one of our biggest competitive advantages. We are excited about the future and remain on track to deliver on our Power of Three ×2 growth plan,” added McDonald.

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Notably, the company’s net revenue increased approximately 17 percent in North America and 60 percent internationally during the first quarter that ended on April 30, compared to the same period last year. Additionally, the company’s direct-to-consumer net revenue represented 42 percent of total net revenue, compared to approximately 45 percent during the same period last year.

It’s worth noting that Lululemon’s gross profit increased by about 32 percent during the first quarter to $1.2 billion. As a result, the company announced it repurchased about 0.3 million shares, in common stock, at an average price of $336.37 per share for a total cost of $98.1 million.

During the first quarter, Lululemon Athletica opened seven new stores and ended the quarter with 662 stores. Consequently, the company revised its outlook for the remaining part of the year, forecasting even better results.

For the second quarter, Lululemon Athletica expects to report net revenue of between $2.140 billion and $2.170 billion, representing growth of approximately 15 percent. For the whole year, the company revised the outlook to net revenue of between $9.440 billion to $9.510 billion, representing growth of approximately 17 percent.

According to Meghan Frank, the company’s Chief Financial Officer, the good performance for the quarter was due to lower air freight and accelerated sales in China.