Lululemon Beats Revenue, Profit Expectations As New CEO Settles In

   By Micah Maidenberg

Lululemon Athletica Inc. (LULU) beat revenue and profit estimates in its latest quarter, helped along by rising same-store sales and another jump in its direct-to-consumer business.

The Vancouver, British Columbia-based company booked sales of $747.7 million in the quarter ending October 28, up 21% versus the comparable period last year. Analysts polled by FactSet predicted $738 million.

Comparable store sales at the seller of activewear and athleisure apparel were up 6%, Lululemon said Thursday. The company said direct-to-consumer sales rose 44%, and accounted for more than 25% of total net revenue for the quarter, up from about 21% in the year earlier period.

Profit was up 60% to $94.4 million, or 71 per share, surpassing the 69 cents a share analysts anticipated.

On an adjusted basis, per-share profit was 75 cents, beating expectations of 69 cents.

Shares of Lululemon, up 67% so far this year, dropped 5.4% to $124.38 in after-hours trading.

In July, Lululemon appointed Calvin McDonald, who previously worked at beauty company Sephora, as its new CEO, after its former top leader resigned after the company said his behavior failed to meet standards.

The company lifted its full-year revenue guidance, saying it now expects net sales of $3.24 billion to $3.25 billion, compared to the previously guidance of $3.185 billion to $3.24 billion.

Earnings per share are expected to be $3.65 to $3.68, versus the range of $3.45 to $3.53 given earlier.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

December 06, 2018 16:38 ET (21:38 GMT)

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