The technical athletic apparel company, Lululemon Athletic has recently trampled forecast on their recent Q1 run; the company’s stock is seen soaring on the first week of June after the publication of their first quarter results that ended last April 30. While the Q1 for the company were remarkable, they still announced that they will be closing their report last 2009.
Lululemon saw a much needed 15% increases on their shares last week; the surge was heavily backed up by the upbeat earnings report and the announcement to revamp their kids’ clothing line in the following months. The company’s fiscal first-quarter profit was at $31.2 million; the British Columbia-based athletic apparel company also mentioned that they saw a profit of 23 cents per share, while adjusted earnings for asset impairment costs were at 32 cents per share.
The company’s published revenue of $520.3 million for the quarter, overtaking most of the analysts’ forecasts; surveys that were conducted by Zacks Investment Research were tallying revenue of $512.7 million in the same period. Folks at Zacks also revealed that analyst was expecting that Lululemon’s earnings would grow 28 cents per share.
Lululemon’s Q2 Forecasts
For the second quarter that would be ending in August; per-share earnings would probably hit the range of 33 cents and 35 cents, while the expected revenue for the next quarter will be in the range of $565 million to the $570 million mark. On the other hand, Zacks surveyed analysts were expecting revenue to hit the $563.2 million mark, a middle ground based on the company’s forecasts.
Taking on the whole year level, Lululemon’s expectation for its full-year earnings would be in the range of $2.28 to $2.38 per share; while revenues are expected to hit the $2.53 billion to $2.58 billion mark. While the Q1 performance gave a much-needed splash for the athletic apparel company, their whole shares for this year have dipped by at least 25% and dipping as much as $48.75 last week making it decrease by 26% in the last 12 months.
Ivivva Line Gets Drop
The company’s teen line, Ivivva which was introduced for the general public in late 2009, is looking to put its curtain down by the end of the third quarter. According to the company’s Chief Financial Officer Stuart Haselden, "The store closures and restructuring will be substantially complete by the end of the third quarter,"
The teen girls focused Ivivva currently counts 55 branded stores, and according to recent report 40 of those will be closing along with Ivivva showrooms and other pop-up stores. The massive overhaul due to the company’s planned reconstruction that would cost them around $50 million to $60 million in pre-tax costs.
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