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Lululemon shares surge after reporting 30% jump in Q4 revenue

Vancouver-based Lululemon is locked in a legal battle with another apparel giant, and a report from Re/Max says local homeowners should be able to weather any recessionary pressures. BIV's Tyler Orton has your business news – Jan 31, 2023

Shares of Lululemon Athletica Inc. climbed more than 10 per cent in early trading after the company reported its net revenue for its fourth quarter rose 30 per cent compared with a year ago.

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Shares in the retailer were up US$46.96 at US$367.27 in early trading on the Nasdaq market.

Lululemon, which keeps its books in U.S. dollars, reported after the close of markets Tuesday that it earned net income of US$119.8 million or 94 cents per diluted share for the quarter ended Jan. 29 as it recorded post-tax impairment and other charges related to its Mirror business totalling US$442.7 million.

The company earned US$434.5 million or US$3.36 per diluted share in the same quarter a year earlier.

On an adjusted basis, the company says it earned US$4.40 per diluted share in its latest quarter, up from an adjusted profit of US$3.37 per diluted share a year earlier.

Net revenue for the quarter totalled US$2.77 billion, up from US$2.13 billion.

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In its outlook, Lululemon says it expects revenue in the first quarter of its 2023 financial year to be in a range of US$1.89 billion to US$1.93 billion. Diluted earnings per share are expected to be in a range of US$1.93 to US$2 for the quarter.

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