Lululemon Athletica Inc. (NASDAQ:LULU) shares rose after the company reported stronger-than-expected results for its first quarter and raised FY2019 earnings guidance.
Net revenue was $782.3 million, an increase of 20% compared to the first quarter of fiscal 2018.
Total comparable sales increased 14%. Comparable store sales increased 6%, or increased 8%. Direct to consumer net revenue increased 33%, or increased 35% on a constant dollar basis.
LULU also says gross profit was $421.7 million, an increase of 22% compared to the first quarter of fiscal 2018. Income from operations was $128.8 million, an increase of 23% compared to the first quarter of fiscal 2018.
Lululemon ended the first quarter of fiscal 2019 with $576.2 million in cash and cash equivalents compared to $966.6 million at the end of the first quarter of fiscal 2018. Inventories at the end of the first quarter of fiscal 2019 increased 19% to $443.0 million compared to $373.4 million at the end of the first quarter of fiscal 2018. The Company ended the quarter with 455 stores.
Calvin McDonald, Chief Executive Officer, commented: "lululemon continues to see strong momentum across the entire business. I'm inspired by our teams who are executing at high levels, and I want to thank everyone across the globe for their passion and dedication to the brand. I look forward to the opportunities ahead of us, and delivering on our Power of Three five-year vision."
Shares hiked $5.17, or 3%, to $176.06
