Lululemon Beats

Lululemon reported strong sales for the 2022 holiday quarter. Wealthy shoppers are still buying their expensive athleisure products, despite rising prices for essential goods. Lululemon's shares rose about 16% following the report.

Revenue rose to $2.77 billion from $2.13 billion a year ago thanks to same-store sales soaring 27%. The company's fourth-quarter net income fell to $119.8 million, due to impairments and other charges related to the acquisition of Mirror.

Lululemon expects to make between $9.30 billion and $9.41 billion in revenue in fiscal 2023, higher than the $9.14 billion expected by analysts. The company's CFO was in top form on the earnings call. Lululemon will continue growing outside North America and the introduction of its men's line should carry on taking market share from competitors.

I'm still very bullish on rich people getting healthier and looking gorgeous in technical cashmere garments. If you like this sector and already own Nike, this is one to consider.