Lululemon shares skyrocket on high revenue

Shares of Lululemon Athletica Inc. climbed more than 12 per cent on Wednesday after the company reported its net revenue for its fourth quarter rose 30 per cent compared with a year ago.

Shares in the retailer were up $40.73 (U.S.) at $361.04 when the Nasdaq market closed Wednesday.

Lululemon reported after the close of markets Tuesday it earned net income of $119.8 million or 94 cents per diluted share for the quarter ended Jan. 29 as it recorded post-tax impairment and other charges related to its Mirror business totalling $442.7 million.

The company earned $434.5 million or $3.36 per diluted share in the same quarter a year earlier.

On an adjusted basis, the company says it earned $4.40 per diluted share in its latest quarter, up from an adjusted profit of $3.37 per diluted share a year earlier.

Net revenue for the quarter totalled $2.77 billion, up from $2.13 billion.

In its outlook, Lululemon says it expects revenue in the first quarter of its 2023 financial year to be in a range of $1.89 billion to $1.93 billion.

Diluted earnings per share are expected to be in a range of $1.93 to $2 for the quarter.