Stock jumps, sales top estimates

Lululemon on Wednesday reported first-quarter earnings and sales outpaced analyst estimates, sending shares almost 4% in after hours trading.

Here's what the athletic apparel maker reported with what Wall Street was expecting, based on a survey of analysts at Refinitiv:

• Earnings per share: 74 cents per share, vs. 70 cents per share, expected
• Revenue: $ 782 million, vs. $ 755 million, expected

The company also raised its full-year guidance. It expects revenue between $ 3.73 billion and $ 3.77 billion, and earnings per share between $ 4.51[ads1] and $ 4.58 in 2019.

For the first quarter ended May 5, no income rose to $ 96.6 million, or 74 cents a share, from $ 75.2 million, or 55 cents a share.

Lululemon shares, as of Wednesday's market close, have surged more than 40% this year. The stock at the end of April hit an all-time high of $ 179.50 per share, but more recently has fallen back down to around $ 170.

Same-store sales, a key indicator for the retailer's business, grew 14%, beating a Refinitive Consensus estimate for 11.6%

On the company earning call, CFO Patrick Guido said that Lululemon's second-quarter guidance, which was lower than analyst estimates, reflects a "modest impact" from potential new tariffs, as well as additional costs to airfreight products in order to avoid anticipated port congestion in Asia due to pending tariff increases

Most of the impact from tariffs will occur in the laugh half of the year, mostly in the third quarter, Guido said. He expects the negative impact of additional costs to be about 5 cents on earnings per share in 2019. "Lululemon continues to see strong momentum across the entire business," said Chief Executive Officer Calvin McDonald.

He added that Lululemon was optimistic about future opportunities and delivering on its five-year growth plan, which aims to double men's and digital revenues, and to quadruple international revenues.