Lululemon Beats Estimates In Q1 2022… And Jim Cramer Approves
Lululemon Athletica Inc. (Nasdaq: LULU) reported on Thursday its financial results for fiscal Q1 2022 ended May 1, 2022, highlighting a quarterly revenue of US$1.61 billion. This beats the consensus estimate of US$1.53 billion and is an increase from Q1 2021’s US$1.23 billion.
While the quarterly gross margin slid down to 53.9% from last year’s 57.1%, the apparel brand ended with a stronger bottomline at US$190.0 million compared to last year’s US$145.0 million. This translates to US$1.48 earnings per share, also beating the estimate of US$1.43 per share.
Following the earnings performance for the quarter, the company is raising its fiscal 2022 revenue guidance to US$7.61 – US$7.71 billion from the previously announced US$7.49 – US$7.62 billion, also exceeding the analysts’ expected US$7.54 billion. For Q2 2022, the firm is expecting sales to land US$1.75 – US$1.775 billion, also beating the estimate of US$1.71 billion.
The firm also raised its expected adjusted earnings per share for 2022, increasing it to US$9.35 – $9.50 from the previous forecast of US$9.15 – US$9.35. Analysts were pegging the figure at US$9.28 per share.
For the next quarter, the firm is expecting US$1.82 – US$1.87 adjusted earnings per share–beating analysts’ estimate of US$1.77 per share.
The company’s quarterly performance got the nod of Mad Money host Jim Cramer, commending that the athletic wear brand “really [knows] how to deliver.”
However, the company sustained an operating cash outflow of US$243.3 million, mainly driven by a US$320.6 million increase in inventories. The firm also burned US$232.6 million cash during the quarter through its share buyback program. This led the firm to end the three-month period with cash and cash equivalents balance of US$649.0 million from a starting balance of US$1.26 billion.
But the increase in inventories during the quarter brought its value up to US$1.28 billion from its starting balance of US$966.5 million. This contributed to the current assets ending at US$2.30 billion while current liabilities ended at US$1.21 billion.
The apparel chain ended the quarter with 579 stores, up from 523 stores from the year-ago period.
Lululemon last traded at $302.58 on the Nasdaq.
Information for this briefing was found via Edgar and the companies mentioned. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
