Lululemon Q1 - Strong start to the year

Lululemon has reported a strong start to the fiscal year, surpassing expectations and providing an upbeat full-year outlook. The company credited improvements in China and lower air freight costs for its better-than-expected financial performance.

Revenue increased by 24% to $2 billion, with significant growth seen in China where sales surged by 79%. Net income for the period was $290 million, up 52% year-on-year. Both numbers exceeded expectations.

As a result, Lululemon raised its full-year revenue guidance to between $9.44 billion and $9.51 billion, outdoing previous estimates and beating Wall Street projections. Following the earnings report, Lululemon's stock surged over 12% in extended trading.

The positive results indicate robust demand for the company's premium activewear, despite weakness in the overall consumer environment. Lululemon plans to expand internationally, particularly in China, with the opening of 30 to 35 stores this year.

Lululemon's results stand out compared to other apparel retailers, many of whom have reported declines in comparable sales and cited economic uncertainty. There are exceptions such as Abercrombie & Fitch and Anthropologie, who also experienced double-digit growth in sales.