Lululemon is optimistic about the future

The Canadian sportswear supplier Lululemon Athletica Inc. closed the 2021/22 financial year with surprisingly strong results. The forecasts that the company presented on Tuesday evening were also well received by investors: the share price immediately rose by seven percent.

In the fiscal year that ended in January, the Vancouver-based yoga apparel specialist generated sales of $6.26 billion (EUR 5.61 billion), an increase of 42 percent (currency-adjusted +40 percent) compared to the previous year. The level of 2019/20 was exceeded by 57 percent.

Thanks to higher margins, earnings rose even faster: Operating profit was $1.33 billion, up 63 percent year-on-year. Net income grew 66 percent to $975.3 million and diluted earnings per share were $7.49.

In the current year, the company, which recently presented its first sneaker collection, intends to grow strongly again. Revenue is expected to increase by 20 to 22 percent to $7.490 to $7.615 billion, and diluted earnings per share are forecast to range from $9.15 to $9.35. The possible effects of the current share buyback program are not taken into account.

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