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Lululemon Sales Nearly Double as Store Traffic Rebounds

Lululemon reported first-quarter earnings that beat analyst expectations on sharply higher revenue as shopper traffic steadily rebounded to its stores.

Lululemon shares  (LULU) - Get Report were rising Thursday after the apparel company reported sharply higher fiscal first-quarter earnings fueled by e-commerce sales and an accelerating return to normalcy in the U.S.

Shares of the Vancouver, British Columbia company rose 2.28% to $325.10 at last check. Lululemon ended its regular trading session down 1.07% to $317.36.

For the quarter ended May 2, Lululemon's net income rose to $144.9 million, or $1.11 a share from $28.6 million, or 22 cents a share in the year ago period.

Adjusted earnings per share were $1.16 a share in the first quarter of 2021.

Revenue nearly doubled to $1.22 billion from $651.9 million in the year-ago quarter.

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A survey of analysts by FactSet produced consensus estimates of GAAP profit of 90 cents a share, or an adjusted profit of 91 cents, on revenue of $1.13 billion.

"Our first quarter results reflected strength across all drivers of growth, fueled by the continued expansion in our e-commerce business and a rebound in brick and mortar stores," said Chief Executive Calvin McDonald in a statement.  "Our strong performance across categories, channels and geographies demonstrates the momentum and strength of lululemon as we shift into the new normal." he added.

For the second quarter of 2021, Lululemon expects net revenue to be in the range of $1.3 billion to $1.33 billion. 

Earnings per share are expected to be in the range of $1.05 a share and $1.10 a share for the quarter and adjusted earnings per share are expected to be in the range of $1.10 a share to $1.15 a share.

For the full fiscal year 2021 ending on January 30, 2022, the company said net revenue to be in the range of $5.82 billion to $5.9 billion. 

Earnings per share are expected to be in the range of $6.52 a share to $6.65 a share for the year and adjusted earnings per share are expected to be in the range of $6.73 a share to $6.86 a share.