Lululemon stock pops on earnings, buyback plans

Lululemon Athletica (LULU) shares popped in after-hours trading. The retailer posted first quarter earnings of $2.54 per share, topping the $2.39 estimate. Net revenue of $2.21 billion was just shy of the $2.2 billion expectation.

For the full-year, Lululemon raised its earnings guidance to $14.27 to $14.47 per share. It had expected $14 to $14.20.

The retailer is also increasing its stock buyback program by $1 billion.

Yahoo Finance's Julie Hyman and Jared Blikre break down the retailer's quarterly results.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Stephanie Mikulich.

Video transcript

We want to get you some earnings numbers, Lulu Lemon.

Just out with its numbers here, the shares are up by about 10.5%.

So let's break it down for you here.

The company's first quarter earnings beating estimates revenue coming in at $2.21 billion.

That's about in line with estimates as well and total comparable sales excluding the effects of currency up 7%.

That is short of estimates.

But there are some things that are mitigating what may be met results.

Uh Otherwise here, the company is maintaining its second quarter and its full year sales forecast, which seems to be reassuring the market to some extent and it is also expanding its stock buyback program by $1 billion.

So it's stock buyback authorization here.

I'm looking at some of the comparable sales details here, comps were flat compared to the first quarter of 2023 in the Americas.

But internationally comps sales were up 25%.

That's 29% on a constant currency basis.

I think that's really important here because the company's sales have been stagnating here in the United States, but they have been looking overseas for growth and it looks like that that engine is continuing here and just looking at the share price on the Wi Fi Interactive, I have a year to date chart and you can see down 40% for the year.

So overall markets up 10 11%.

Uh Lulu's down 39% and then you tack on another 10%.

Assume that comes tomorrow morning, you're still somewhere down here.

So you still got a ways to go to climb that back.

You take a look at the entire pandemic picture.

Um There was, I remember the old uh arguments for long Lulu in 2020.

Um And those persisted into 2020 one.

Then we have that she that steep sell off and a lot of pandemic stocks did not come back.

Lulu impressively made record highs once again here, but they've just had a difficult time executing this year.

So maybe the execution problems in the rear view mirror.

We'll see.

Yes, we will see.

Um Although there's a lot of competition out there.