Lululemon posts adjusted EPS, net revenue beat

Lululemon reported earnings that topped estimates, posting $1.73B in net revenue and an adjusted EPS of $2.58, beating Street estimates of an EPS of $2.49 and an estimated net revenue of $1.66B. Yahoo FInance’s Emily McCormick breaks down the key metrics.

Video Transcript

ADAM SHAPIRO: Athleisure giant Lululemon just reported earnings, and Emily McCormick joins us with what they're telling us. Emily?

EMILY MCCORMICK: Adam, we're taking a look at a beat on the top and bottom lines here for Lululemon's fiscal fourth quarter results. Now diving right into these numbers, we saw net revenue grow to $1.7 billion. That was better than the $1.66 billion expected and the $1.4 billion that the company posted in the same period last year.

Now taking a look at those bottom line results, we saw adjusted earnings come in at $2.58 per share, also better than the $2.49 that had been expected. And we saw those closely watched comparable sales grow 20%, much better than that 12.9% increase that had been anticipated.

And much of this was again, driven by that direct-to-consumer segment. We saw that direct-to-consumer net revenue was up 92% on a constant basis. So again, really seeing that e-commerce and direct-to-consumer channel driving much of the growth here for Lululemon.

Now I do want to highlight that we are seeing the shares fluctuating between small gains and losses in late trading. One of the reasons for this potentially is because we saw that their full-year guidance was a little bit light on the bottom line. The company noted that it sees adjusted earnings per share coming in between $6.30 and $6.45, which is a bit below the $6.68 expected, although their full-year net revenue forecast was a beat even on the low end of the forecast.

Now the final thing I want to highlight is I'm taking a look at the earnings press release and I don't see any mention just yet about supply chain issues. That's something that analysts have really been looking for going into this earnings results, because of the disruptions we saw with the Suez Canal and also some of those supply chain disruptions reported at Nike just a couple of weeks ago. So that will definitely be something to listen for on the earnings call later today, Adam and Shauna.

ADAM SHAPIRO: Emily McCormick, thank you very mu--