Amazon (AMZN) shares retreat after wide Q2 earnings miss >>> READ MORE

LULU: Lululemon Stock Pops Despite Weak Outlook

Store sales faded slightly during the last quarter


On Thursday, yoga-wear maker Lululemon Athletica (LULU) posted a better-than-expected fourth-quarter profit, but warned of a weaker first quarter. LULU shares surged more than 7% in morning trading.

lululemon stock LULU
Source: Flickr

LULU stock jumped after Lululemon reported earnings of $109.7 million during the fourth quarter, up fractionally from $109.4 million in the year-ago period. EPS came in at 75 cents, topping the 72 cents a share that Wall Street had anticipated, Reuters notes.

Here Are 4 Reasons To Be Optimistic About Lululemon
Here Are 4 Reasons To Be Optimistic About Lululemon

Quarterly net revenue was $521 million, up 7% from last year. Same-store sales slipped 2%, though overall sales climbed 4%.

For the first quarter, Lululemon said it expects earnings of between 31 and 33 cents per share. That disappointed analysts, who are looking for a profit of 38 cents per share.

LULU forecast first-quarter revenue between $377 million and $382 million, which also fell short of the $389.4 million that analysts have predicted.

Last week, LULU launched a line of casual wear for women, called “&Go.” The new line includes pants, tops and sundresses, priced between $50 and $200.

LULU stock closed at $48.23 per share on Wednesday. LULU stock has dropped more than 20% over the past 12 months.

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC