Lululemon earnings, sales top estimates on strong demand for workout gear

Lululemon on Thursday reported sales of $1.1 billion, up 22% from a year ago and beating analysts’ estimates, as shoppers frequented the retailer’s stores and website to buy workout apparel during the period.

In North America, net revenue grew 19%, boosted by its e-commerce business.

Due to the uncertainty around the Covid-19 pandemic, which has forced it to shut a handful of its stores temporarily again, Lululemon is not offering a full outlook for 2020.

However, CFO Meghan Frank noted the company has planned for the holiday quarter “based on multiple performance scenarios,” and he believes it to be “well positioned” for the holiday season.

Lululemon shares jumped more than 3% in after-hours trading.

Here’s how the retailer did during its fiscal third quarter, compared with what analysts were expecting, based on Refinitiv data:

• Earnings per share: $1.16, adjusted, vs 88 cents, expected
• Revenue: $1.12 billion vs. $1.02 billion, expected

As of Thursday’s market close, Lululemon shares are up more than 59% year to date. It has a market cap of $48.1 billion.

You can find the full earnings press release here.

This story is developing. Please check back for updates.