Shares of Lululemon soared more than 10% after the company disclosed its estimate beating fiscal fourth quarter earnings on Wednesday. Earnings per share came at $1.85 per share versus estimated $1.74 per share; revenue came at $1.17 billion versus and estimated $1.15 billion; and same store sales rose 16% in line with estimates. The quarter ending in February, net income rose to $218.5 million, or $1.65 per share, from $119.8 million, or 88 cents per share. Strong sales during the holiday quarter helped in a revenue rise of $1.17 billion from $928 million in the year-ago quarter. Achieved a operating margin of 21.5% during the quarter, two years ahead of schedule.
But the most exciting news for the quarter was its foray into the men’s wear segment proved to be highly successful.
The company, which so far specialised in women wear, disclosed that its recent foray into men’s apparel has been the most exciting segment for the year. And with just 20% market penetration, it is expected to be one of major growth driver for the company in years to come. Specifically, the men’s “bottoms” segment has been extremely profitable. To further enhance its brand presence, the company also recently announced former Philadelphia Eagles Superbowl quarterback Nick Foles as the brand’s first men’s ambassador.
Keeping women’s business at the core, the company also plans to widen its offering by focusing on some of the other segments within the apparel industry like office, travel, commute, outerwear and bras along with developing gear for the warm weather runs.