Great to See.....

Despite a guarded approach to its 2015 guidance, investors and analysts appear convinced that the turnaround at Lululemon Athletica Inc. is for real and showed their confidence in the company by sending shares up almost 5 percent after the company reported a double-digit improvement in sales and better-than-expected earnings in the fourth quarter.

After seeing sales decelerate following a recall on its sheer Luon pants in 2013 and a now apparently peaceful resolution of its conflict with founder Chip Wilson, the company surprised Wall Street with a revenue gain in last year’s second quarter and has kept the sales gains coming.

Exceeding guidance it raised in January based on strong sales, the Vancouver-based yoga and activewear firm reported net income for the three months ended Feb. 1 of $110.9 million, or 78 cents a diluted share, 5 cents above the consensus estimate of analysts. Year-ago profits were $109.7 million, or 75 cents.

Revenues rose 15.6 percent, to $602.5 million from $521 million, just above the analysts’ consensus estimate of $602.4 million. Comparable sales were up 6 percent, 8 percent at constant currency, including a 2 percent gain in same-store sales, which rose 5 percent at constant currency. Direct-to-consumer revenues were up 17 percent to $114.5 million, accounting for 19 percent of the total versus 18.8 percent in last year’s quarter.

Lululemon guided investors to limited expectations for the new year, with anticipated first-quarter revenue of $413 million to $418 million and EPS of 31 to 33 cents, below the $442 million and 39 cents, respectively, previously anticipated by analysts.

Source - WWD, March 27th 2015