Lululemon shares rally as revenues jump 13 per cent

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Lululemon

Lululemon has continued its upwards trajectory after reporting double-digit revenue growth and rising profits across 2017.

The athleisure frontrunner posted net revenue growth of 13 per cent to $2.6 billion (£1.83 billion) during the year, while like-for-like sales jumped seven per cent.

Gross profits also grew 22 per cent to $522.4 million (£368.24 million).

The Canadian retailer’s promising results were boosted by a strong fourth quarter.

In the three months to January 28 digital sales jumped 42 per cent and international sales across Europe and Asia rose 42 per cent and 52 per cent respectively.

After raising its revenue forecast for 2018 to between $2.99 billion (£2.10bn) and $3.02 billion (£2.13 billion), shares in Lululemon jumped six per cent in after hours trading.

Last year the athleisure craze was predicted to hit £2.5 billion in the UK after sales rose over eight per cent in the sector, however many analysts believe the craze has peaked.

Despite this Lululemon’s chief operating officer Stuart Haselden remains confident it will hit its goal of $4 billion (£2.82 billion) in revenue by 2020.

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