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- Lululemon shares surged on Wednesday afternoon after fourth-quarter earnings surpassed analysts' estimates.
- In January, Lululemon announced its fourth quarter revenue. Wednesday's report exceeded the expectations of the company.
- Shares of the sportswear retailer rose more than 10% Wednesday night.
- Watch Lululemon exchange live.
Lululemon shares jumped more than 10% after trading hours on Wednesday, after the company posted fourth-quarter results higher than Wall Street estimates. The company's earnings guidance for the entire year also exceeded expectations.
Here is what Lululemon reported about what the analysts surveyed by Bloomberg expect:
- Adjusted earnings per share (EPS): $ 1.85 against $ 1.74.
- Returned: $ 1.2 billion versus $ 1.15 billion.
- Annual EPS: $ 4.48 to $ 4.55, against $ 4.41.
The sportswear company announced in a statement released in January that it expects net sales of between $ 1.14 and $ 1.15 billion, up from the previous forecast of 1.15 billion and $ 1.125 billion.
The Canadian retailer also cleared a $ 500 million buyback program, adding to another record year for corporate buybacks in 2019. In the fourth quarter, the company bought back $ 1.5 million worth of cash. stock shares at an average cost of $ 120.99 per share. .
The last quarter turned out to be a mixed bag for the company. Although Lululemon has outperformed Wall Street, stocks have fallen due to weaker than expected prospects.
These results, along with updated January forecasts, explain why investors focused on the company's future outlook in Wednesday's report, said Deutsche Bank analysts, led by Paul Trussell.
"We remain confident in the company's superior growth through the innovation and expansion of its products, as well as its long track of international landing," they wrote. in a message to customers last week.
Lululemon was up 19% this year since Wednesday's close, trading close to $ 146 per share.
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