Lululemon meets Wall Street's high expectations |
| MSN Money - Sep 7, 2012 |
Shares of Lululemon Athletetica (LULU +12.45%) rose more than 10% Friday, reversing an earlier decline as investors in the trendy maker of yoga apparel liked what they saw.
Net income at the Vancouver company surged more than 49% in the last quarter to $57.2 million, or 39 cents a share, from $38.4 million, or 26 cents, a year earlier. Excluding a tax-rate adjustment, profit came in at 34 cents, beating the 31-cent Wall Street consensus forecast. Profit would have been 31 cents at its previous tax rate.
Revenue surged 33% to $282.6 million ahead of analysts' forecasts of $282.3 million. Same-store sales, a key retail metric, rose an eye-popping 15%, which actually represents a decline from last year's 20%.
For most of the recession, Lululemon seemed to be invincible, making it a favorite target of short sellers. Wall Street soured on the company in July after the company posted an unexpectedly large gain in inventories and slashed its earnings outlook for 2012. Fierce competition from Under Armor (UAUA 0.00%) and Nike (NKE -0.17%) added to the company's woes.
Read Full Article from MSN Money
- Posted: 2012-09-07 16:23:45
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