Lululemon outperforms in fourth quarter beating supply-chain challenges
By Shubhangi on Mar 30, 2022 | 02:30 AM IST
• Revenue rose 23% at $2.1 billion in the quarter
Lululemon Athletica Inc. (NYSE: LULU) on Tuesday posted higher revenue for the fourth quarter despite supply-chain challenges and spike in Covid-19 cases due to Omicron variant.
The company reported net revenue of $2.1 billion in the quarter, an increase of 23% from the previous year.
Net income rose to $434.5 million, or $3.36 a share, compared to analysts’ expectations of $3.27 a share, according to FactSet.
The athleisure company said it opened 22 net new stores during the quarter, which brings total number of stores to 574 by the end of the fiscal year.
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Lululemon is one of the few companies which have managed to beat supply chain constraints and lower staff availability due to Omicron spread.
The company projects revenue to rise between 20% and 22% this year and the earnings per share are projected to be between $9.15 and $9.35 for the year.
Lululemon also said its board approved stock buyback of up to $1 billion. Shares of the company gained about 8% in after-hours trading.
Picture Credits: Zuma Press