Lululemon notches 4th straight day of gains as company's direct to consumer sales offset in-store losses
- Lululemon climbed as much as 6% on Thursday and closed at $386.07 during its fourth straight day of gains following its strong earnings report last week.
- The athletic apparel company's revenue increased 22% year over year, and direct to consumer revenue increased 94%. Bank of America said the increase offset comparable store sales which decreased 17%.
- Shares of Lululemon are up over 60% year-to-date.
- Watch Lululemon trade live here.
Lululemon Athletica climbed as much as 6% on Thursday and closed at $386.07 during its fourth straight day of gains. The athletic apparel company is up over 12% this week following its strong third quarter earnings report.
Lululemon's revenue increased 22% to $1.1 billion since the third quarter of 2019. Meanwhile, direct to consumer net revenue increased 94% year over year. Comparable store productivity was 83%, representing a comparable store sales decrease of 17%, though Bank of America said this was offset by the otherwise strong sales figures.
The bank reiterated its "Buy" rating for Lululemon last week and said the company looks well-positioned to continue its strong growth trajectory following the wider distribution of coronavirus vaccines. Bank of America analysts see Lululemon shares surging roughly 11% to $425.
The company beat third quarter earnings by 20%, with an adjusted earnings per share of $1.16 versus the estimated $0.88.
Shares of the athletic apparel company are up over 60% year-to-date.