Lululemon Athletica (NASDAQ: LULU) stock gained 13.5% in Thursday's after-hours trading session, following the athletic-wear specialist's release of a strong report for the first quarter of fiscal 2023 (which ended April 30). Investors' enthusiasm is attributable to the quarter's results beating Wall Street's consensus estimates for both revenue and earnings, along with management raising its full-year guidance for both the top and bottom lines.

Consumers, in general, have been tightening their spending on apparel and other discretionary products, due to concerns about the economy and, more specifically, high inflation. But Lululemon continues to post fantastic revenue and earnings growth. This is likely a reflection of several factors, including that more affluent people are usually less affected by a challenging macroeconomic environment than their less-affluent counterparts.

Data source: Lululemon. GAAP = generally accepted accounting principles. Fiscal Q1 2023 ended April 30, 2023.

Continue reading

Source Fool.com