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Lululemon Athletica Inc on Tuesday warned it had more store closings and was at risk of demanding a resurgence in potential COVID-19 cases, although it forecast first-quarter earnings higher than analysts' estimates.The company said any increase in the event, including new breeds, could hamper demand and disrupt supply chains, while stores struggling with capacity constraints, sending shares down 1.6 percent in long-term trading.
However, the GAME SANOOK company's stock is up 64% over the past 12 months as Lululemon's demand for leggings and sports bras has risen from home-strapped consumers looking for comfortable attire.Regardless of the vaccine, the euphoria will continue to sell, and Lululemon has found a variety between comfort and active wear," said Jessica Ramirez, retail analyst at Jane Hali & Associates.
The company also provides a home fitness startup Mirror to provide additional revenue this year, and it expects its peak revenue to rise as much as 65% to $ 275 million in 2021 due to the demand for online fitness classes at flourishing Lululemon said it would increase its investment in the startup, which offers a subscription to live exercise classes on mirrorless video monitors to maintain growth.The Canadian company forecast first-quarter revenue of $ 1.10 billion to $ 1.13 billion,
higher than analysts had forecast of $ 999.5 million, according to IBES data from Refinitiv.Adjusted first-quarter earnings per share are expected to be 86 cents to 90 cents, above the 82 cents estimate. Lululemon's full-year earnings per share were forecast of $ 6.30 to $ 6.45, but well below the estimate of $ 6.72.Net income rose 24 percent to $ 1.73 billion in the fourth quarter, above the $ 1.66 billion estimate, as online sales rose 92 percent compared to the previous quarter.
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