Shares of Lululemon (NASDAQ:LULU) posted a gain in after-hours trading after the company reported earnings for its first quarter of Fiscal Year 2023. Earnings per share came in at $2.28, which beat analysts’ consensus estimate of $1.96 per share. Sales increased by 24.2% year-over-year, with revenue hitting $2 billion. This beat analysts’ expectations of $1.92 billion.
Lululemon’s comparable sales added 17% on a constant dollar basis, and its direct-to-consumer net revenue represented 42% of its total net revenue. That’s down slightly from this time last year, where direct-to-consumer represented 45% of total net revenue.
Lululemon’s management also offered some guidance. For the second quarter, Lululemon looks for net revenue between $2.14 billion and $2.17 billion. Diluted earnings per share, meanwhile, are expected between $2.47 and $2.52 per share. As for Fiscal Year 2023, Lululemon management looks for revenue between $9.44 billion and $9.51 billion, with diluted earnings per share coming in between $11.74 and $11.94.
Overall, Wall Street has a consensus price target of $400.86 on Lululemon, implying 22.08% upside potential, as indicated by the graphic above.
