Lululemon Earnings: Double-Digit Growth Just Not Enough for Shareholders

lululemon athletica inc. (NASDAQ:LULU) reported net income above Wall Street’s expectations for the most recent quarter.

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lululemon athletica inc Earnings Cheat Sheet for the First Quarter

Results: Net income for lululemon athletica inc. rose to $46.6 million (32 cents per share) vs. $33.4 million (23 cents per share) in the same quarter a year earlier. This marks a rise of 39.8% from the year-earlier quarter.

Revenue: Rose 53% to $285.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: lululemon athletica inc. beat the mean analyst estimate of 30 cents per share. It beat the average revenue estimate of $270.9 million.

Quoting Management: Christine Day, lululemon’s CEO stated: “Our strategy to increase inventory levels led to strong revenue growth and earnings performance in the first quarter as our guests responded well to our spring styles and colors.”

Key Stats:

lululemon athletica inc. (NASDAQ:LULU) has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 42%, with the biggest boost coming in the most recent quarter when revenue rose 53% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 34.2% and in the third quarter of the last fiscal year, the figure rose 50.9%.

lululemon athletica inc. (NASDAQ:LULU) has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the fourth quarter of the last fiscal year, by 2 cents in the third quarter of the last fiscal year, and by 4 cents in the second quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 34 cents a share to 33 cents over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $1.60 per to share to $1.63.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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