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Lululemon Earnings: LULU Stock Dives 8% Lower on Q1 Miss

LULU missed EPS and revenue estimates during the quarter

Lululemon (NASDAQ:LULU) earnings for fiscal first quarter of 2020 have LULU stock taking a beating after-hours Thursday. That comes after reporting diluted earnings per share (EPS) of 22 cents on revenue of $652 million. These both come in below Wall Street’s estimates of 23 cents per share and revenue of $688.48 million.

Lululemon Earnings: LULU Stock Dives 5% Lower on Q1 Miss
Source: Richard Frazier / Shutterstock.com

Now, let’s take a deeper dive into the most recent Lululemon earnings report.

  • Diluted per-share earnings are down 70.3% compared to 74 cents in the same period of the year prior.
  • Revenue for the quarter is sitting 17% lower than the $782.32 million in the fiscal first quarter of 2019.
  • Operating income of $32.75 million is a 75% drop year-over-year from $128.81 million.
  • The Lululemon earnings report also has it bringing in a net income of $28.63 million.
  • That’s a 70.4% decrease from the company’s net income of $96.6 million reported during the same time last year.

Calvin McDonald, CEO of Lululemon, said this in the fiscal Q1 earnings report:

“I’m proud of how lululemon has navigated these unexpected and unprecedented times. We are learning more every day about our guests — how they enjoy interacting with us online and what makes them comfortable as stores reopen.” McDonald continued: “Our strong digital business demonstrates the strength of our guest connection and the long-term opportunity to create further Omni experiences going forward.”

Lululemon isn’t providing guidance for fiscal 2020 due to the novel coronavirus. That makes sense with the pandemic making markets hard to predict. Many other companies are following a similar route in regards to outlook.

LULU stock was down 7.7% during after-hours trading on Thursday.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/06/lululemon-earnings-hammer-lulu-stock/.

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