Lululemon Athletica's business came out with strong growth in the first quarter of its fiscal year 2021. The group's revenues increased significantly during this period. This strong performance was driven by the reopening of stores and online sales. Thus, the company has benefited from the deconfinement to record strong results in Q1-2021.
For the entire first three months of its fiscal year 2021, Lululemon Athletica reported revenue of $1.23 billion compared to $652 million in the same period last year. It reports a strong 88% year-over-year increase. Also, this AC is slightly higher than the market's expectation of $1.13 billion in the current quarter.
In the first quarter of 2021, the net profit recorded by the group is multiplied by five or more. Net income for the first quarter of 2021 increased fivefold or more to $145 million (or $1.11 per share) from $28.6 million (or 22 cents per share) a year earlier. EPS was $1.16 (excluding non-recurring items), compared with analysts' expectations of 91 cents.
Over a two-year period (compared to Q1-2019), sales show a 57% increase in Q1-2021. Also, the US-based premium yoga wear manufacturer estimated that its men's business grew faster than women's compared to 2019.
Unlike other companies that have been negatively impacted by the pandemic, this has instead benefited Lululemon. For the past quarter as a whole, direct-to-consumer revenue jumped 55% year-over-year to $545.1 million.
Geographically, the athletic apparel maker saw an 82% increase in sales in North America during Q1 2021. The increase was stronger for international sales. They rose 125% in the quarter.
Lululemon Group also unveiled its financial targets for the current quarter and for the entire current fiscal year. For the second quarter of 2021, the U.S. maker of premium yoga wear is targeting adjusted earnings per share of between $1.10 and $1.15.
Analysts, meanwhile, are expecting Q2-2021 earnings of $1.01 per share. Over the entire period, the company expects revenue in the range of $1.3 billion to $1.33 billion. This is above the market's expectation of $1.20 billion.
For the full year 2021, Lululemon expects adjusted earnings per share of between $6.73 and $6.86. Analysts, on the other hand, expect $6.48 per share. In addition, the company has raised its annual revenue outlook.
The company is now targeting revenue of between $5.83 billion and $5.91 billion for the current fiscal year. For its part, the market expects a turnover of 5.68 billion dollars. As a reminder, the company previously expected revenues of between $5.55 billion and $5.65 billion for the year.