Shares of athleisure giant Lululemon LULU are falling in Friday afternoon trading, now down 5.6%, after reporting Q1 earnings that missed top and bottom line estimates. Revenue fell 17% year-over-year to $651.96 million, and earnings came to 22 cents per share.
The company did not report same-store sales because of temporary store closures and did not provide full-year guidance.
However, direct-to-consumer sales through its website and app jumped 70% to $352 million and accounted for 54% of total revenue in the first quarter. Just in April, online sales soared 125%.
Management does not expect to return to earnings growth until Q4, but CEO Calvin McDonald is optimistic for the future, saying “Demand for the brand and the demand for the category I feel has only strengthened through this.”
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