Lululemon's stock pops on killer sales
March 27, 2019
Lululemon is hot.
Sales at stores open at least a year increased 7% during Lululemon's most recent quarter compared with a year earlier. Profit grew 28% during the quarter from last year, too.
Men's and women's shorts and yoga pants drove the jump in sales. Lululemon's "men's bottoms" division grew 28% during the quarter.
Wall Street was impressed with the results. Lululemon's (LULU) stock jumped 9% in after-hours trading.
Lululemon's strength signals that demand for athletic clothes continues to rise for both women and men. "The business is running on all cylinders," Jane Hali & Associates said in a research note.
Lululemon has been opening up stores in recent years and expanding beyond yoga pants into workwear and outdoor clothing. The company says it's on pace to hit $4 billion in annual sales in 2020.
North America is Lululemon's largest market, but the company plans to rely more on Europe and Asia for growth in the future.
Lululemon also recently launched two styles of men's boxers and wants to expand its men's business.
"Men's is one of our largest and most exciting areas of the future growth," CEO Calvin McDonald told analysts on a call Wednesday.
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