A Lululemon Athletica store in Pasadena, California.
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Shares of Lululemon jumped nearly 9% in extended trading on Wednesday after the sportswear maker reported second-quarter profit and tax revenue that exceeded analysts ’expectations.
The retailer also offered a better-than-expected outlook for the third quarter and for the year.
Based on its current forecasts, Lululemon is now on track to surpass its revenue target for 2023 by the end of this year, two years ahead of schedule.
The following explains how the company did compared to what Wall Street expected, using a Refinitiv survey of analysts:
- Earnings per share: $ 1.65 adjusted versus $ 1.19 expected
- Revenue: $ 1.45 billion versus projected $ 1.34 billion
Net income for the three-month period ended Aug. 30 rose to $ 208.1 million, or $ 1.59 per share. That tops $ 86.8 million, or 66 cents a share, a year earlier. Excluding unique items, the company earned $ 1.65 per share. It’s better than the $ 1.19 that analysts surveyed by Refinitiv had been looking for.
Revenue rose 61% to $ 1.45 million from $ 902.9 million in the previous year. That was ahead of expectations of $ 1.34 billion.
Sales in North America increased 63% year-on-year and increased 49% internationally.
For the third quarter, Lululemon recorded revenues of between $ 1.4 billion and $ 1.44 billion, with an adjusted earnings per share ranging from $ 1.33 to $ 1.38. Analysts had been looking for Lululemon to earn $ 1.32 per share with revenue of $ 1.322 billion, according to Refinitiv.
For the fiscal year, it expects revenues to range between $ 6.19 million and $ 6.26 million. Adjusted earnings per share are expected to be between $ 7.38 and $ 7.48. Analysts had been looking for Lululemon to earn $ 6.91 per share with sales of $ 5.94 million.
Lululemon said his outlook does not take into account the future unknown impacts of the Covid spread.
“Our performance in the second quarter was driven by a strong response to our product offering, improved productivity in our stores and sustained strength in e-commerce,” CFO Meghan Frank said in a communiqué.
Shares of Lululemon have increased by approximately 9% to date. Recently, shares have traded lower from the all-time high of $ 417.85, which reached the end of last month. Lululemon’s market cap is nearly $ 50 billion.
Find the full Lululemon press release here.