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Lululemon Athletica (LULU) shares are falling in Thursday's extended hours trading after its first quarter earnings results coming out largely in line with estimates; first quarter net revenue came out to $2.37 billion, a touch higher than Wall Street consensus predicting $2.36 billion.
Julie Hyman and Josh Lipton dive into the athleisure brand's earnings print, second quarter and full-year revenue forecasts, and its comparable sales figures.
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Lululemon earnings are crossing the wire. The shares down a quick 13% here. That looks to be, uh, has to do with the company's revenue forecast for the second quarter. So I'll tell you that first. Net revenue for the second quarter seen by the company at 2.54 to 2.56 billion dollars. Analysts, on average, had estimated 2.57 billion dollars. It also looks like, uh, that the company's forecast for the full year for net revenue leaves it room to miss estimates. For the first quarter, earnings per share met estimates, $2.60. And in the first quarter, net revenue at $2.37 billion. Comparable sales, which we always look at for this company as well, they were up 1% in the first quarter. America's comparable sales down 2%, international up by 6%. So, um, seeing a little bit of a weakness here in in the US and the Americas, which is their biggest market.
Yeah.
You know, this stock, Julie, it was already down about 12% year to date heading to this print. Now you're down another quick 12 or 13% here, at least initially in the after hours. I do see, um, the CEO, that would be Calvin McDonald, trying to sound an optimistic tone here. Uh, McDonald talked about, uh, in the first quarter achieving growth across channels and categories and markets, um, including the US, he calls out. Um, he talked about guests responding well to product innovations and newness and brand activations, does characterize the macro as, uh, dynamic, is how he puts it.
Um, I also want to call out as I look down here to the increase in net revenue, um, or I should say the comparable sales, let's go there for China, which has also been a big market for them. Um, so it looks like the China change was 7%, a 7% increase. If you take out the effect of foreign exchange, you get an 8, 8% gain. So still seeing that sort of relative strength in China relative to the rest of the world. On a net revenue basis, China's revenues were up 21% or 22% in constant currency. So that's something I know that investors have been watching.