lululemon athletica (NAS: LULU) reported earnings on June 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 29 (Q1), Lululemon beat expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.


Margins shrank across the board.

Revenue details
Lululemon reported revenue of $285.7 million. The 19 analysts polled by S&P Capital IQ predicted revenue of $274.1 million on the same basis. GAAP reported sales were 53% higher than the prior-year quarter's $186.8 million.

anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.32. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.31 per share. GAAP EPS of $0.30 for Q1 were 30% higher than the prior-year quarter's $0.23 per share.

anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 55.0%, 370 basis points worse than the prior-year quarter. Operating margin was 25.6%, 210 basis points worse than the prior-year quarter. Net margin was 15.3%, 260 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $292.9 million. On the bottom line, the average EPS estimate is $0.34.

Next year's average estimate for revenue is $1.37 billion. The average EPS estimate is $1.68.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS. Among 362 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 252 give Lululemon a green thumbs-up, and 110 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lululemon is outperform, with an average price target of $78.56.

With hundreds of companies like Lululemon competing for shoppers' limited dollars, strong brands matter. Household names can provide growth for even boring, mature companies -- as long as you choose the right ones. Learn about a few who have what it takes in our free report: "3 American Companies Set to Dominate the World." Click here for instant access to this free report.

  • Add Lululemon to My Watchlist.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Lululemon. Motley Fool newsletter services have recommended buying shares of Lululemon. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Investing in Real Estate

Learn the basics of investing in real estate.

View Course »

Asset Allocation

Learn the most important step in structuring an investment portfolio.

View Course »

Add a Comment

*0 / 3000 Character Maximum