Lululemon Athletica (LULU) - Get Lululemon Athletica Inc Report shares fell in after-hours trading, as the casual apparel retailer’s latest revenue failed to meet estimates, but earnings per share beat expectations amid the coronavirus pandemic.
For the fiscal 2020 first quarter ended May 3, revenue fell 17% to $651.96 million from $782.32 million in the year-ago quarter. Analysts surveyed by FactSet expected revenue of $691.6 million for the latest quarter.
Net income totaled $28.63 million, or 22 cents per share, in the latest quarter, down from $96.60 million, or 74 cents a year earlier. Analysts predicted 20 cents a share for the latest quarter.
The pandemic shut many of Lululemon’s stores around the world. It began opening shops after May 3. As of June 10, 295 of its company-operated stores were open. The company has a total of about 490 stores, according to Statista.
Lululemon was able to weather the store shutdown to some extent, as customers ordered online. "Our strong digital business demonstrates the strength of our guest connection and the long-term opportunity to create further omni experiences going forward," CEO Calvin McDonald said in a statement.
Earlier in the week and last week, several analysts raised their share-price targets for Lululemon.
MKM Partners analyst Roxanne Meyer raised her target to $378 from $230. Deutsche Bank boosted its price target to $241 from $197.
Oppenheimer lifted its price target to $370 from $296. Bank of America Securities raised its target to $230 from $220. And Wells Fargo lifted its target price to $275 from $250.
Lululemon shares fell $21.62, or 7%, to $286.50 in after-hours trading. It fell 4.68% in regular trading Thursday amid a broad market selloff tied to coronavius case increases and more disappointing economic data.