Shares of Lululemon Athletica (LULU) are up 8% in premarket trading today after the Vancouver-based company reported better-than-expected earnings.
The athletic apparel maker said its revenue surpassed $6 billion U.S. for the first time, with net profits growing nearly 32% in the fourth quarter of 2021.
Lululemon, which reports its earnings in U.S. dollars, says it earned $434.5 million U.S. or $3.36 U.S. per diluted share in the fourth quarter, up from $329.8 million U.S. or $2.52 U.S. a share a year earlier.
Adjusted profits came in at $3.37 U.S. per diluted share, up from $2.58 U.S. per share in the fourth quarter of 2020. Revenues increased 23% to $2.13 billion U.S. from $1.73 billion U.S., with total comparable sales increasing 32% and e-commerce revenue rising 17% to now represent 49% of total revenues.
Analysts had expected Lululemon to report $3.28 U.S. per share in adjusted profits on $2.14 billion U.S. of revenues in Q4, according to Refinitiv data.
For the full year, Lululemon earned $975.3 million U.S. on $6.26 billion U.S. of revenues, up from $588.9 million U.S. on $4.4 billion U.S. of revenues in 2020.
The company said it opened 22 new company-operated stores during the fourth quarter, ending last year with 574 stores total.
Prior to today’s move higher, Lululemon’s stock had declined 11% this year to finish trading in New York yesterday (March 29) at $343.97 per share.
