September 9, 2021
Lululemon Athletica Inc expects Wednesday’s annual earnings and profits to exceed expectations as demand for comfortable leggings and sports bras remains strong despite the relaxation of coronavirus restrictions.
Shares rose 13% to $ 430.62 after the company also announced better-than-expected quarterly results. Investors traded more than $ 500 million in stock after Bell, according to Refinitiv data.
Sportswear makers include Lululemon and Nike Inc, where people exercise at home during the Covid-19 pandemic. And Nike Inc. Under armor Ltd
However, apparel makers are facing supply chain problems with the new coronavirus-led blockade in Vietnam, as they rely heavily on Southeast Asian countries for manufacturing.
“Another wave of factory closures associated with Covid-19 in Vietnam, ongoing problems at ports, and reduced air cargo capacity have contributed to disruptions and increased costs within the supply chain. ” Calvin McDonald, Lululemon’s CEO said on a post-earning phone call.
However, the company is working to shift production from Vietnam as much as possible, adding that it is prioritizing major autumn holiday-style production to increase air cargo use and alleviate supply chain problems.
Owners of the Mirror Home Fitness Platform said they currently expect annual net sales to exceed an estimated $ 5.94 billion, ranging from $ 6.19 billion to $ 6.26 billion.
Lululemon predicts full-year adjusted earnings per share between $ 7.38 and $ 7.48, compared to analysts’ average estimate of $ 6.91.
According to Refinitiv’s IBES data, second-quarter net sales were up 61% to $ 1.45 billion, above the estimated $ 1.34 billion.
On an adjusted basis, Lululemon generated $ 1.65 per share, with an estimate of $ 1.19 per share.
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Lululemon provides a bright year-round forecast for strong training apparel demand
Source link Lululemon provides a bright year-round forecast for strong training apparel demand