Athletic apparel retailer Lululemon Athletica reported another strong quarterly performance that sent its stock 12.72 percent up on Wednesday. The company managed to beat Wall Street expectations with a healthy margin, extending its streak to 11 quarters.
Lululemon reported revenue of $2.77 billion compared to the $2.70 billion expected, while its adjusted earnings per share came at $4.40 versus the estimated $4.26. The company now predicts revenue between $9.3 billion and $9.41 billion for fiscal 2023, which would beat the Wall Street estimates of $9.14 billion.
“Looking ahead, we remain optimistic regarding our ability to deliver sustained growth and long-term value for all our stakeholders,” said the company’s CFO Meghan Frank in a statement.
Despite fears that high inflation could slow customer demand across the retail industry, Lululemon finds itself in a better position that most of its competitors. It has a loyal customer base and has solved the inventory issues that plagued its business in the best. Most analysts predict even better results for the company in the future and remain optimistic about Lululemon’s underperforming international business and men’s business.
After Wednesday’s jump, the Lululemon stock closed at $361.04 per share on Wednesday compared to the $320.31 close from the day prior. The company’s shares are 11.65 percent up year-to-date.