LULU - Lululemon Needs To Turn Its Fortune Around In The Americas | Benzinga
On Wednesday, Lululemon Athletica Inc. (NASDAQ: LULU) surpassed Wall Street’s earnings and revenue estimates with its first fiscal quarter results. However, the Nike NYSE: NKE) and Adidas AG (OTC: ADDYY) rival also issued a weak second quarter outlook as it faces a slowdown at its largest market, the Americas, where it reported flat comparable sales. But, Lululemon stock still jumped 10% upon the report during extended trading on Wednesday.
Fiscal First Quarter Highlights
For the quarter ended on April 28th, Lululemon reported sales grew about 10% to $2.21 billion, surpassing LSEG’s estimate of $2.19 billion.
the athletic apparel retailer reported a net income of $321 million, or $2.54 per share, also surpassing LSEG’s estimate of $2.38 per share. Not having the right sizes and colors in its stores hit Lululemon’s sales for the second consecutive quarter. The color assortment was too narrow in leggings and there wasn’t enough stock of sizes its customers wanted, but management expects to sort out these issues during the ...