A woman jogs past a Lululemon retail store.
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Lululemon on Thursday reported second quarter earnings that topped analysts’ expectations, sending the athletic apparel retailer’s shares up as much as 5% in after-hours trading.
The company also hiked its full-year outlook. CEO Calvin McDonald said in a statement he sees “significant runway” ahead, as Lululemon continues to push into new categories.
Sales for its men’s business, which has been a key growth driver, climbed 35%, outperforming the growth of its women’s apparel. Revenue in North America was up 21%.
Here’s how Lululemon did for its fiscal second quarter compared with what analysts were expecting, based on Refinitiv estimates:
- Earnings per share: 96 cents vs. 89 cents expected
- Revenue: $883.35 million vs. $846.83 million expected
- Same-store sales: up 15% vs. growth of 12.2% expected
Net income during the period ended Aug. 4 grew to $125 million, or 96 cents per share, from $95.77 million, or 71 cents a share, a year ago. Lululemon earned 7 cents per share more than analysts had forecast, based on a poll by Refinitiv.
Net sales climbed 22% to $883.35 million from $723.5 million a year ago, beating expectations of $846.83 million.
The company said overall same-store sales were up 15%, better than the expected growth of 12.2%. Within that figure, sales at stores rose 10%, while direct-to-consumer sales grew 30%. Lululemon ended the quarter with 460 locations.
Digital sales were up 31%, with Lululemon now offering shoppers the option to buy online and pick up in store at nearly all of its shops in North America, up from 150 locations in the first quarter.
Lululemon expects full-year net revenue to fall between $3.80 billion and $3.84 billion, compared with a prior range of $3.73 billion to $3.77 billion.
It expects full-year earnings per share to fall between $4.63 and $4.70, up from a range of $4.51 to $4.58.
Earlier this summer, the company opened its biggest store ever, in Chicago, and is planning to roll out more like it. This is part of the company’s growth strategy, which has included entering new categories, such as personal care.
Lululemon in April said it plans to double its men’s and online sales over the next five years, targeting annual revenue growth in the low teens during that time frame. It also plans to quadruple international revenue by 2023.
Lululemon shares are up more than 54% so far this year. The company as of Thursday’s market close has a market cap of $24.5 billion.