Lululemon Athletica Earnings: Here’s Why the Stock is Up Now
Lululemon Athletica Inc. (NASDAQ:LULU) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.60%.
Lululemon Athletica Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 47.06% to $0.75 in the quarter versus EPS of $0.51 in the year-earlier quarter.
Revenue: Rose 30.68% to $485.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Lululemon Athletica Inc. reported adjusted EPS income of $0.75 per share. By that measure, the company beat the mean analyst estimate of $0.74. It beat the average revenue estimate of $482.1 million.
Quoting Management: Christine Day, lululemon’s CEO, stated: “The fundamentals of our business are strong, we delivered excellent results in 2012, and we plan to continue to earn the loyalty of our customers and shareholders every day going forward. As previously announced on March 18th, we pulled a selection of our black Luon pants from our stores. Delivering the top quality our guests expect is a critical factor in our differentiation in the market place. Our proprietary fabric, black Luon, is a very technical and sensitive product to manufacture. We have a long history with our manufacturers and as we have in the past, we are working closely with them to resolve the current issues. We have a team on site collaborating with them to identify the root cause. We have recently added strong leadership in Quality Control, our Liason Office and our commercialization and development teams, and expect these people and other investments to solidify our quality consistency and our delivery capabilities.”
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