Yogawear maker Lululemon Athletica on Wednesday reported profit rose 6% in its fourth-quarter, topping expectations, though the company issued a soft earnings forecast for the current quarter.
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In the first quarter, Lululemon estimates sales in the range of $483 million to $488 million, with same-store sales up in the mid-single digits on a constant-dollar basis. The company expects earnings of 28 cents to 30 cents a share. Analysts were looking for earnings of 37 cents a share on $486.1 million in revenue.
The Vancouver company has been working to retool its image after it had to recall some yoga pants in 2013 for being too sheer and as shoppers' preferences have shifted from basics to more elaborate designs.
Lululemon has revamped its product line to include more patterned items, and it has worked to grow its men's and children's businesses.
Overall for the period ended Jan. 31, Lululemon posted a profit of $117.4 million, or 85 cents a share, up from $110.9 million, or 78 cents a share, a year earlier. Revenue rose 17% to $704.3 million.
Lululemon had guided for earnings of 78 cents to 80 cents a share on revenue of $690 million to $695 million.
Sales at stores open at least a year were up 1% in the fourth quarter. Excluding currency fluctuations, these sales rose by 5%.
The company took a tax hit to repatriate some foreign earnings.
For the full year, the maker of yoga pants expects earnings of $2.05 to $2.15 a share and projected estimated revenue in the range of $2.29 billion to $2.34 billion, with same-store sales up in the mid-single digits on a constant-dollar basis. Analysts were expecting $2.16 a share in earnings on $2.32 billion in revenue, according to FactSet.
The company's stock, up 19% in the past three months, was unchanged premarket.
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