Lululemon generated document annual gross sales as demand for informal attire surged, regardless of provide chain disruptions and Omicron-related staffing challenges.
The athleisure firm additionally introduced a $1bn inventory buyback and forecast that gross sales would develop greater than analysts had forecast in fiscal 2022, whilst extra employees return to the workplace. Lululemon expects full-year internet income to be within the vary of $7.49bn to $7.615bn, larger than the consensus estimate of $7.3bn.
The upbeat outlook despatched shares of Lululemon up greater than 7 per cent in after-hours buying and selling.
Known for its yoga pants, Lululemon thrived in the course of the pandemic as shoppers bought comfy athleisure attire to put on at dwelling. Some shoppers proceed to do business from home, boosting demand.
In January, Lululemon warned buyers that decreased staffing and retailer hours due to the Omicron variant of coronavirus would affect income. It mentioned on the time that gross sales and earnings have been on monitor to settle close to the low finish of its earlier steerage.
Lululemon can also be navigating the availability chain disruptions and price will increase affecting company America. Calvin McDonald, chief government, mentioned on a name with buyers on Tuesday that Lululemon plans to extend costs over the course of the 12 months on a small portion of kinds however expects to maintain pricing aggressive with its friends.
The Vancouver-based firm mentioned full-year gross sales grew 42 per cent 12 months on 12 months and got here in at a document $6.3bn. Sales jumped 23 per cent to $2.1bn within the three months to the tip of January compared with the fourth quarter a 12 months in the past.
Lululemon reported a fourth-quarter revenue of $3.37 a share on an adjusted foundation, larger than its forecasted vary of $3.25 to $3.32 a share, and surpassing analysts’ expectations for $3.28.