Lululemon doubles net income as shares jump

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Lululemon has seen its shares jump following the release of double-digit revenue growth in its quarterly results which beat analyst expectations.

In the three months to April 29, the athleisure retailer saw net income more than double to $75.1 million (£56.5 million), while net revenues rose 23 per cent to $649.7 million (£488.7 million) – significantly above analysts expectations of $617.7 million (£464.7 million).

Comparable sales also saw a healthy 19 per cent boost, thanks to an eight per cent rise in store sales and 62 per cent growth in its ecommerce platform.

Lululemon, which is still searching for a chief executive after Laurent Potdevin resigned abruptly amid reports he “fell short” of “standards of conduct”, has now raised its outlook for the coming year.

For the full year, the retailer now expects revenues to come between $3.04 billion (£2.29 billion) and $3.08 million (£2.31 billion), up from previous estimates of between $2.985 billion (£2.25 billion) and $3.02 billion (£2.27 billion).

This has sent share prices jumping 30 per cent for the year-to-date.

“Our first-quarter results reflect the ongoing strength of our business and our continued focus on product innovation, global growth, digital acceleration, and, most importantly, investing in our people,”, chief operating officer Stuart Haselden said.

“Our momentum remains strong and we are optimistic for 2018 and beyond.”

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