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Lululemon Soars After Beat And Raise, Plans To Shift ivivva To E-Commerce Business

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Lululemon Soars After Beat And Raise, Plans To Shift ivivva To E-Commerce Business
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Is this the start of a Lululemon Athletica inc. (NASDAQ: LULU) turnaround? The influential Canadian athletic apparel brand has struggled significantly year to date, with shares down over 25 percent.

Things may be starting turn around, however, after Lululemon reported encouraging first-quarter results that saw a beat and raised fiscal 2017 outlook after the close Thursday.

In Review

  • Lululemon reported Q1 Adj. EPS $0.32, beating estimates by $0.04
  • Sales came in at $520.3 million, beating estimates by $6.4 million
  • Lululemon raises FY 2017 Outlook from $2.26–$2.36 to $2.28–$2.38
  • The company sees Q2 Adj. EPS of $0.33-$0.35 and sales in the range of $565 million–$570 million
  • First-quarter comps were down 1 percent

Lululemon also announced it plans to restructure its girls activewear brand, ivivva, toward a primarily e-commerce focused business. The company announced it will close 40 of its 55 ivivva branded stores and convert half the remaining stores to Lululemon branded stores.

"I'm excited to see the positive trends that materialized late in Q1 continuing into Q2. Our current outlook for the remainder of 2017 is strong, and I'm energized by the growth strategies taking shape. I'm also confident in our plans to restructure ivivva and believe they are the best means to optimize this part of the business," said lululemon CEO, Laurent Potdevin.

"From our cadence of product innovation, to our enhanced digital experience, and first-ever global brand campaign, we have never felt more deeply connected to our guest or better positioned to expand our collective. We remain laser focused on owning our position as the global brand defining an active, mindful lifestyle," Potdevin added.

At time of publication, shares were up over 14 percent at $55.60 in Thursday's after-hours session.

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Posted-In: IVIVVA Laurent Potdevin lululemonEarnings News Best of Benzinga

 

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