Lululemon shares jumped nearly 9% in extended trading Wednesday after the athletic apparel maker reported fiscal second-quarter profit and revenue that topped analysts’ expectations.
The retailer also offered a better-than-expected outlook for the third quarter and for the year.
Based on its current forecast, Lululemon is now on track to surpass its 2023 revenue target by the end of this year, two years ahead of schedule.
Here’s how the company did compared with what Wall Street was expecting, using a Refinitiv survey of analysts:
- Earnings per share: $1.65 adjusted vs. $1.19 expected
- Revenue: $1.45 billion vs. $1.34 billion expected
Net income for the three-month period ended Aug. 30 rose to $208.1 million, or $1.59 per share. That’s up from $86.8 million, or 66 cents per share, a year earlier. Excluding one-time items, the company earned $1.65 per share. That’s better than the $1.19 that analysts polled by Refinitiv had been looking for.
Revenue rose 61% to $1.45 billon from $902.9 million in the year-ago period. That was ahead of expectations for $1.34 billion.
Sales in North America rose 63% year over year and were up 49% internationally.
For the third quarter, Lululemon sees revenue in a range of $1.4 billion to $1.43 billion, with adjusted earnings per share falling in the range of $1.33 to $1.38. Analysts had been looking for Lululemon to earn $1.32 per share on revenue of $1.32 billion, according to Refinitiv.
For the fiscal year, it expects revenue to range between $6.19 billion and $6.26 billion. 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 on sales of $5.94 billion.
Lululemon said its outlook does not take into consideration future unknown impacts from the spread of Covid.
“Our performance in Q2 was driven by a strong response to our product offering, improving productivity in our stores, and sustained strength in e-commerce,” CFO Meghan Frank said in a statement.
Lululemon shares are up about 9% year to date. Recently, the stock has traded down from an all-time-high of $417.85, which it hit late last month. Lululemon’s market cap is nearly $50 billion.
Find the full earnings press release from Lululemon here.