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Lululemon (LULU) Rallies on Strong Q1 Earnings, Comps Grow 8%

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Lululemon Athletica Inc. (LULU - Free Report) just released it latest quarterly results, posting earnings of 55 cents per share and revenues of $649.7 million.

Currently, LULU is a #2 (Buy) on the Zacks Rank, but that could change based on today’s results. Shares of the athleisure giant have gained about 18.5% over the past month and were down a slight 0.55% during regular trading hours today.

The stock is currently up about 6.7% to $112.09 per share in after-hours trading shortly after its earnings report was released.

Lululemon:

Beat earnings estimates. The company reported earnings of 55 cents per share, easily beating the Zacks Consensus Estimate of 46 cents per share.

Beat revenue estimates. The company saw revenue figures of $649.7 million, topping our consensus estimate of $616.32 million and surging 25% year-over-year.

Total comparable sales increased 20%, while comparable store sales grew 8%. Direct to consumer net revenues sored 62% from the prior-year period.

Gross margin for Q1 was 53.1%, an increase of 370 basis points, while operating margin was 16.1%, and increase of 740 basis points compared to the first quarter of fiscal 2017.

Looking ahead, Lululemon expects 2018 revenues to be in the range of $3.04 billion to $3.075 billion, with total comparable sales increasing in the high single digits. Diluted EPS should fall between $3.10 and $3.18 per share.

Stuart Haselden, Chief Operating Officer, noted that "Our first quarter results reflect the ongoing strength of our business and our continued focus on product innovation, global growth, digital acceleration, and, most importantly, investing in our people. Our momentum remains strong and we are optimistic for 2018 and beyond."

Here’s a graph that looks at Lululemon’s recent earnings performance:

lululemon athletica inc. Price, Consensus and EPS Surprise

lululemon athletica inc. Price, Consensus and EPS Surprise | lululemon athletica inc. Quote

lululemon athletica Inc. designs and retails athletic clothing for women, men, and female youth. Its apparel assortment, including items, such as fitness pants, shorts, tops and jackets, is designed for activities such as yoga, running and general fitness. The Company's fitness-related accessories include an array of items, such as bags, socks, underwear, yoga mats, instructional yoga digital versatile discs and water bottles. lululemon athletica Inc. is based in Vancouver, Canada.

Check back later for our full analysis on LULU’s earnings report!

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