Shares of Lululemon Athletica Inc. surged Friday after the company beat expectations in its latest results and increased its earnings outlook for the year.
The company’s share price climbed US$17.14 or 16.32 per cent to close at US$122.19 on the Nasdaq to hit an all-time high.
The stock rise came after the Vancouver-based clothing company reported net income of US$75.2 million in the quarter ending April 29, beating analyst expectations of US$61.3 million according to Thomson Reuters Eikon. It was also a big increase from the US$31.3 million for the same quarter last year.
The yoga and athletic-focused retailer also increased its diluted earnings per share expectations to between US$3.10 and US$3.18 from the US$3 to US$3.08 it had forecast in March.
The strong earnings come as the company reported sales growth in both its stores and online, including an eight per cent increase in comparable store sales and a 62 per cent increase in direct to consumer revenue which includes online sales.
Retail analyst Neil Saunders says the online sales boost can be attributed to a relaunched website, while overall the company continues to innovate on products and has significant growth potential including with its menswear offerings.
The Canadian Press