Source: Company reports

1Q16 RESULTS

Lululemon Athletica reported adjusted 1Q16 EPS of $0.30 versus the consensus estimate of $0.31. Total revenue was $495.5 million versus consensus of $487.6 million. Comps increased by 8% on a constant-currency basis versus consensus of 6.3%. Store-only comps were up 5% versus consensus of 2.8%. Inventory increased by 21% at the end of the quarter, compared to a 17% increase in sales during the period. In some previous quarters, inventory had increased well above the rate of sales, so these 1Q16 figures represent an improvement over past quarters.

2016 OUTLOOK

Management provided 2Q16 EPS guidance of $0.36–$0.38 versus consensus of $0.39. Total revenue is expected to be $505–$515 million versus consensus of $514.3 million, and comps are projected to increase in the mid-single-digit range on a constant-dollar basis. Full-year EPS is expected to be $2.05–$2.15, consistent with prior guidance and compared to consensus of $2.15. Total revenue is now expected to be $2.305–$2.345 billion versus $2.285–$2.335 billion previously and versus consensus of $2.34 billion. Comps are expected to be up in the mid-single-digit range on a constant-dollar basis.