Lululemon Athletica Inc. (LULU) shares are up $2.03, or 3.30%, to $63.55 in pre-market trading Tuesday after the company reported its first quarter earnings results.
The yogawear retailer posted earnings of $0.34 per share on revenues of $423.5 million, up 10.1% from $384.6 million a year ago, helped by a 6% rise in total comparable-store sales on a constant-dollar basis. Analysts were expecting EPS of $0.33 on revenues of $418.69 million. During the period ended May 3, 2015 gross profit expanded 5% to $206 million. As a percentage of net revenue gross profit was 48.6% for the quarter compared to 50.9% a year earlier. The company’s net income came in at $47.8 million, or $0.34 per share (diluted), compared to $18.9 million, or $0.13 per share in the first quarter of fiscal 2014.
Laurent Potdevin, lululemon’s CEO, stated: “Our team’s solid performance resulted in another improving quarter – coming in ahead of our revenue expectations. We drove positive trends in traffic, conversion, and brand engagement, along with a continued acceleration of our e-commerce business.” Mr. Potdevin continued: “To support our long term goals, we are intentionally striking a strategic balance between strong growth and investments within innovation and infrastructure.”
For Q2/15, LULU provided EPS guidance of $0.31 – $0.33 versus consensus of $0.34 per share. The company also issued revenue projection of $440 – $445 million, compared to the consensus revenue estimate of $439.69 million. For the full fiscal 2015, company expects net revenue to be in the range of $2 bln – $2.05 bln based on total comparable sales in the mid single digits on a constant dollar basis. Diluted EPS are expected to be in the range of $1.86 – $1.91 for the full year.
Cash Position: The $8.74 billion market cap company reported $656 million in cash vs. $143.4 million in total current liabilities in its most recent quarter. Inventory totaled $236.5 million compared to $180.4 million yoy. lululemon ended the quarter with 316 stores.
Sage Therapeutics, Inc. (SAGE) gained 13% ahead of the bell on news of positive top-line data from its exploratory trial of SAGE-547 to treat postpartum depression.
“Severe postpartum depression is a serious and debilitating form of major depressive disorder,” commented Samantha Meltzer-Brody, M.D., Director of the Perinatal Psychiatry Program, University of North Carolina Center for Women’s Mood Disorders and Principal Investigator of the trial. “The signal of SAGE-547’s activity is highly encouraging for women and their families facing the devastating consequences of this condition.”
Keep an eye on the following names this session as they were favorably mentioned on Monday’s Mad Money: Apple (AAPL), Amazon (AMZN), Netflix (NFLX), and Tesla Motors (TSLA).