Lululemon’s (LULU) stock is up 10% after the Canadian athletic apparel maker posted better-
than-expected earnings and raised is guidance for the remainder of this year.
The Vancouver-based company reported second quarter earnings per share of $2.20 U.S.
compared to $1.87 U.S. that had been expected on Wall Street. Revenues totalled $1.87 billion
U.S. versus $1.77 billion U.S. that was forecast by analysts who cover the company.
In a news release, Lululemon said its same store sales grew 23%, which beat estimates of
17.6%. Net sales rose 29% to $1.87 billion U.S. in the quarter.
The company said that sales remain strong both in-store and online. Store traffic increased over
30%, and ecommerce traffic rose more than 40%.
Lululemon has a higher-income customer base and said its patrons seem unfazed by inflation
and higher consumer prices.
The company continued its brick-and-mortar expansion plans during the April through June
period, opening 21 net new stores and bringing its total number of locations to 600.
Inventories grew 85% to $1.5 billion U.S. in Q2 compared to the same period a year earlier.
Looking ahead, Lululemon said it now expects revenue for the full year of between $7.865
billion U.S. and $7.940 billion U.S., up from a range of $7.610 billion U.S. to $7.710 billion U.S.
that the company previously forecast.
Lululemon also raised its earnings per share guidance to a range of $9.75 U.S. to $9.90 U.S.,
up from a previous estimate of $9.35 U.S. to $9.50 U.S.
Lululemon’s stock is down 24% this year and currently trading at $294.45 U.S. per share.
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