Lululemon proves yogawear trend is still hot

Things are looking up for yogawear retailer Lululemon Athletica Inc., which reported a large increase in revenue from online sales in the first quarter.

The company known for its yoga-inspired fashions posted revenue of $423.5 million for the first quarter ended May 3, up 10% from $384.6 million in 2014. Lululemon's profit was $47.8 million or 34 cents per share, up from $19 million or 13 cents per share a year earlier.Revenue grew to $423.5 million from $384.6 million a year earlier, topping the company’s projection for $413 million to $418 million in revenue. Total same store sales were up 6%.

Laurent Potdevin, lululemon's CEO, said: "Our team’s solid performance resulted in another improving quarter – coming in ahead of our revenue expectations. We drove positive trends in traffic, conversion, and brand engagement, along with a continued acceleration of our e-commerce business. To support our long term goals, we are intentionally striking a strategic balance between strong growth and investments within innovation and infrastructure."

For the year, Lululemon raised its earnings forecast by a penny, now calling for per-share profit of $1.86 to $1.91. The company said it expects revenue in the range of $2 billion to $2.05 billion, up from its previous forecast for between $1.97 billion and $2.02 billion.

For the second quarter, Lululemon forecast per-share earnings of 31 cents to 33 cents.