Lululemon said it opened 22 net new stores during the quarter, ending the fiscal year with 574.
Photo: Budrul Chukrut/Zuma Press
Lululemon LULU 3.67% Athletica Inc. posted higher revenue and profit for the fourth quarter, becoming one of the few direct-to-consumer brands to find growth amid rampant supply-chain challenges and the emergence of the Omicron variant.
The athleisure company on Tuesday reported net revenues of $2.1 billion in the quarter ended Jan. 30, up 23% from the previous year. Net income grew to $434.5 million, or $3.36 a share, beating analysts’ expectations of $3.27 a share, according to FactSet.
Lululemon said it opened 22 net new stores during the quarter, ending the fiscal year with 574. Sales at stores open for at least 12 months rose 32%.
Lululemon in January warned that quarterly revenue and earnings would be at the low end of the company’s targets, citing several challenges with the Omicron variant including lower staff availability and reduced operating hours in some locations.
Earlier this month the company announced a move into footwear, launching the Blissfeel running shoe in certain stores with plans of expanding into additional styles through 2023.
Lululemon projects revenue to rise between 20% and 22% this year from the $6.26 billion generated last year. Earnings per share are projected to be between $9.15 and $9.35 for the year. Both measures came in ahead of forecasts from analysts polled by FactSet.
Shares in Lululemon gained about 8% in after-hours trading, as the company also said its board approved a new stock buyback program of up to $1 billion. Lululemon shares are down about 12% this year, compared with a nearly 7% decline in the Nasdaq Composite Index.
Write to Charity L. Scott at [email protected]
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