Lululemon jumps as outlook exceeds expectations
BNN Bloomberg
Lululemon Athletica Inc. shares jumped after the company reported results that surpassed analysts’ expectations, driven by high demand for activewear as it deals with nagging inventory issues that ate into margins.
Global sales rose 30 per cent for the quarter, spurred by strong sales in both North America and abroad. The yogawear retailer expects its full-year sales forecast for fiscal 2023 to grow about 15 per cent to a range of US$9.300 billion to $9.410 billion.
Chief Executive Officer Calvin McDonald has worked to reduce an inventory pileup that has troubled operations in recent quarters, but levels remain high, up 50 per cent from the year prior. Gross margin fell 300 basis points to 55.1 per cent for the quarter and was down 230 basis points to 55 per cent for the year.
Management has ramped up store openings across regions and it seeks out more growth, adding 81 locations to reach more than 600 shops this year.
