Please ensure Javascript is enabled for purposes of website accessibility

Why lululemon athletica Stock Jumped Thursday

By Daniel Sparks - Updated Apr 17, 2019 at 10:39AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The upscale yogawear company continues to impress.

What happened

Shares of athletic apparel company lululemon athletica (LULU -2.00%) shot higher on Thursday, climbing 16% as of 11:11 a.m. EDT.

The stock's gain follows Lululemon's fourth-quarter earnings release, which featured better-than-expected revenue and earnings per share as comparable sales rose by a double percentage rate.

A chart showing a stock price moving higher

Image source: Getty Images.

So what

Strong sales over the holidays helped Lululemon's fourth-quarter revenue jump from $929 million in the year-ago quarter to $1.17 billionin the company's fourth quarter of fiscal 2018. This represents a 26% year-over-year increase. Lululemon's revenue was ahead of a consensus analyst estimate for revenue of $1.15 billion. 

Highlighting the company's strong momentum, comparable sales rose 17% year over year on a constant dollar basis when revenue from an extra week in the year-ago period is excluded.

Lululemon's non-GAAP (generally acceptable accounting principles) adjusted earnings per share were $1.85 -- up from $1.33 in the year-ago quarter and better than analysts' average forecast for $1.74.

Check out the latest earnings call transcript for lululemon athletica.

Now what

Management remains optimistic about the company's growth prospects.

"We are energized to build upon our momentum and to seize the many opportunities ahead for Lululemon around the world," said CEO Calvin McDonald.

The company said it expects comparable sales in 2019 to rise at a rate in the low double digits on a constant dollar basis.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Lululemon Athletica Inc. Stock Quote
Lululemon Athletica Inc.
$287.48 (-2.00%) $-5.88

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.