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Lululemon Posts 4th-Quarter Results Ahead of Estimates - Can't Provide Outlook Due to Virus

Athleisure chain Lululemon reported fiscal-fourth-quarter earnings and revenue ahead of analysts' estimates. It declined to provide guidance as a result of the coronavirus pandemic.
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Lululemon  (LULU) - Get lululemon athletica inc. Report reported fiscal-fourth-quarter results exceeding analysts' estimates but declined to provide guidance as a result of the coronavirus pandemic.

For the quarter ended Feb. 2 the Vancouver retailer earned $2.28 a share compared with $1.65 in the year-earlier quarter. Revenue was $1.4 billion against $1.17 billion. 

Analysts surveyed by FactSet were expecting the apparel retailer to report earnings of $2.24 a share on revenue of $1.38 billion. 

The past year was "strong," Chief Executive Calvin McDonald said in a statement. 

"We are now navigating an extraordinary environment, which is currently impacting our business," 

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"The strength of our brand and strong financial position will help us manage through the day-to-day, while continuing to effectively plan for and invest in our future."

In February, Lululemon temporarily closed all its retail locations in Mainland China. "All but one of these locations have since reopened," the company said. 

In March, it temporarily closed all its retail locations in North America, Europe, Malaysia, New Zealand, "and we temporarily closed our distribution center in Sumner, Wash.. These locations currently remain closed."

Lululemon reported a 20% increase in total comparable-store sales, including internet and in-store. Store comparables rose 9% and direct-to-consumer revenue jumped 41%. 

The company's fourth-quarter gross margin widened 0.7 percentage point from a year earlier, to 58%. 

Lululemon shares at last check after hours slipped 1.9%. They closed the regular session up 3.7% at $200.80.