Lululemon Athletica Inc. stock rose more than 3% in the after-hours session Thursday after the company reported sales that were better than Wall Street expected, with direct-to-consumer sales getting to be a slightly bigger chunk of the retailer’s revenue.
said it earned $190 million, or $1.48 a share, in the first quarter, compared with $145 million, or $1.11 a share, in the first quarter of 2021. Adjusted for one-time items, the company earned $1.16 a share.
Net revenue rose 32% to $1.6 billion, the company said. Direct-to-consumer sales represented 45% of total net revenue, compared with 44% for the first quarter of 2021.
The company was “not immune” to the ongoing impact from the pandemic, supply-chain disruptions and inflation, Chief Financial Officer Meghan Frank said.
But its business “omnichannel” model, including the direct sales, “balanced growth strategy, and unique approach toward innovation enable the positive results we are reporting today and anticipate for the full year,” Frank said in a statement.
FactSet consensus called for earnings of $1.43 a share on sales of $1.6 billion.
Lululemon guided for second-quarter 2022 revenue between $1.750 billion and $1.775 billion, which would be a three-year compound annual growth rate of about 26%.
It called for per-share earnings between $1.89 and $1.94 for the quarter, and adjusted EPS between $1.82 and $1.87.
For the full year 2022, the company guided for revenue to be in a range between $7.610 billion and $7.710 billion. Per-share earnings were seen between $9.42 and $9.57 for the year, and adjusted EPS between $9.35 and $9.50.
Lululemon shares ended the regular trading day up 4.4%, and so far this year have declined 23%. That compares with losses of around 12% for the S&P 500 index