Dive Brief:
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Lululemon Athletica Inc. Tuesday morning reported Q1 sales were $423.5 million, besting estimates of $418.8 million. The retailer beat profit estimates for the eighth straight quarter.
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Q1 same-store sales rose 6%, compared to a 1% increase year over year; not considering currency fluctuations, Q1 same-store sales dropped 1%.
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The company also raised its full-year revenue and earnings forecast, though not as much as analysts have -- a move that analysts say was a likely effort to raise the bar conservatively, in order to more easily beat it again.
Dive Insight:
After a series of self-inflicted wounds and amidst intensifying competition in a category it essentially created, the yoga-gear retailer appears to be getting its groove back. Lululemon has seem to finally resolve its quality issues and is doing well expanding its product line to apparel for beyond the gym and for men.
"Clearly the turnaround efforts are working," Topeka Capital Markets analyst Dorothy Lakner told Reuters.