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Lululemon Athletica Inc. (NASDAQ: LULU) reported financial results for the fiscal third quarter on Thursday that topped analysts’ estimates for profit and sales. The retailer attributed its hawkish performance to online sales that it said made up over 40% of the total quarterly revenue, and offset the hit to store sales due to the ongoing Coronavirus pandemic.
The COVID-19 crisis has so far infected more than 16 million people in the United States and caused a little under 300 thousand death. In an announcement last month, the Canadian company said that its interim finance chief, Meghan Frank, will take on the role of its sole Chief Financial Officer.
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Lululemon’s Q3 financial results versus analysts’ estimates
Lululemon said that its net earnings in the fiscal third quarter printed at £108.82 million that translates to 83 pence per share. In the same quarter last year, it had posted £95.22 million of net earnings or 72.55 pence per share. In the prior quarter (Q2), Lululemon had noted £67.14 million of net income, as per the report published in September.
On an adjusted basis, athletic apparel company earned 88 pence per share in the recent quarter. In terms of revenue, Lululemon reported £830 million that represents a 22% year over year growth. The Vancouver-based company also said on Thursday that its direct-to-consumer revenue made up 43% of the total quarterly sales versus 27% last year.
According to FactSet, experts had forecast the company to register £770 million of sales in Q3. Their estimate of adjusted per-share profit stood at 66.50 pence per share.
Other prominent figures in the retailer’s earnings report include a 19% annualised growth in comparable-store sales.
Lululemon’s performance in the stock market
Lululemon shares tanked roughly 1% in after-hours trading on Thursday. Including the price action, the retailer is now exchanging hands at £276 per share versus £176.40 per share at the start of 2020. The stock had plummeted to as low as £105 per share in March as the COVID-19 crisis pushed its stores into temporarily shutting down. Learn more about how can you start trading on the stock market online.
Lululemon performed fairly upbeat in the stock market last year with an annual gain of close to 90%. At the time of writing, the Canadian retailer is valued at £36.34 billion and has a price to earnings ratio of 89.53.
