Canadian athleisure giant Lululemon announced better than expected fourth quarter sending its share prices flying.
For the three months to April 30 revenues were up five per cent year-on-year to $520.3 million (£404.48 million), nearly $7 million (£5.44 million) over analysts‘ expectations.
Net income came in at $31.2 million (£24.25 million) lower than the $37.98 (£29.53) million expected by analysts and comparable store sales dropped two per cent. Total comparable sales also dropped one per cent.
The company‘s shares were up more than 10 per cent following news of better than expected revenues.
READ MORE: Lululemon‘s quarterly growth beats forecasts
The retailer announced plans to restructure its Ivivva subsidiary alongside its financial results, shifting the focus towards e-commerce aiming to shut 40 of its 55 Ivivva stores. This is expected to cost the retailer $17.7 million (£13.76 million) and will likely be nearly completed by the third quarter of this year.
“I‘m excited to see the positive trends that materialized late in Q1 continuing into Q2,” Lululemon chief executive Laurent Potdevin said.
“Our current outlook for the remainder of 2017 is strong, and I‘m energized by the growth strategies taking shape.
“I‘m also confident in our plans to restructure ivivva and believe they are the best means to optimize this part of the business.”