Lululemon Athletica (NASDAQ: LULU) topped market expectations on revenue and earnings for the first quarter of 2019, allowing its shares to gain 4.2% in after-market hours on Wednesday. The consensus estimate was for earnings of $0.70 per share on revenue of $755 million.  

Total revenue grew 20% to $782.3 million compared to the prior-year quarter. On a constant dollar basis, revenues rose 22%.

Total comparable sales grew 14%, based on a shifted calendar. Comparable store sales rose 6% while direct-to-consumer net revenue increased 33%. Direct-to-consumer revenue represented 26.8% of total net revenue compared to 24.3% last year.    

Lululemon reports first quarter 2019 earnings results

Net income was $96 million, or $0.74 per share, compared to $75 million, or $0.55 per share, in the year-ago period.

At the end of the quarter, inventories increased 19% to $443 million and the company’s store count stood at 455 stores.

For the second quarter of 2019, the company expects revenue of $825-835 million based on a total comparable sales increase in the low double digits on a constant dollar basis. EPS is expected to be $0.86-0.88.

For the full year of 2019, Lululemon expects sales of $3.73-3.77 billion based on a total comparable sales increase in the low double digits on a constant dollar basis. The company estimates EPS to come in the range of $4.51-4.58.

In April, the apparel retailer unveiled its five-year growth plan called “Power of Three” running until 2023. The company believes the new strategy would be a tailwind to power its next phase of growth. As part of the strategy, the three new focus areas in the near future will be menswear, digital sales, and international expansion.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.