Shares of Canadian retailer Lululemon are up 15% after the company issued earnings that beat analysts’ expectations on both the top and bottom lines.
Strong holiday sales helped the athletic apparel retailer to report earnings per share (EPS) of $4.40 U.S. versus $4.26 U.S. that was expected on Wall Street.
Lululemon’s revenue in the three months ended January 29 came in at $2.77 billion U.S. compared to $2.70 billion U.S. that analysts had forecast.
The Vancouver-based company also issued bullish forward guidance, saying it expects fiscal 2023 revenue of between $9.3 billion U.S. and $9.41 billion U.S. That beat Wall Street expectations of $9.14 billion U.S., according to Refinitiv data.
Lululemon also said that it expects a full-year profit of between $11.50 U.S. and $11.72 U.S. per share, compared with analyst consensus estimates of $11.26 U.S. per share in profit.
The company added that its inventories were up 50% in its most recent quarter from a year ago.
Lululemon’s stock has declined 7% in the last 12 months to trade at $320.31 U.S. per share.
