Lululemon Stretches Earnings in Q2

By Chris Lange Updated Jan 30, 4:34PM EST · Published Sep 5, 4:20PM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Lululemon Athletica Inc. (NASDAQ: LULU | LULU Price Prediction) released fiscal second-quarter financial results after markets closed Thursday. The company said that it had $0.96 in earnings per share (EPS) and $883.4 million in revenue, compared with consensus estimates that called for $0.89 in EPS and $845.65 million in revenue. The same period of last year reportedly had $0.71 in EPS and $723.5 million in revenue.

Overall, revenues increased 22% year over year and 23% on a constant currency basis. Direct to consumer net revenue represented 24.6% of total net revenue, compared to 23.1% last year.

Total comparable sales increased 15% from last year, or up 17% in constant currency. Comparable store sales increased 10%, while direct to consumer net revenue increased 30%.

Looking ahead to the fiscal third quarter, the company expects to see EPS in the range of $0.90 to $0.92 and revenue between $880 million and $890 million. Consensus estimates are calling for $0.90 in EPS and $864.42 million in revenue for the quarter.

[nativounit]

CEO Calvin McDonald commented:

We’re pleased with the ongoing strength across our business. We continue to make progress in delivering against our Power of Three growth pillars – product innovation, omni-guest experience, and market expansion. Our success demonstrates the significant runway in front of lululemon and I’m grateful to our teams for bringing our vision to life.

Shares of Lululemon closed Thursday at $188.41, in a 52-week range of $110.71 to $194.25. The consensus price target is $193.96. Following the announcement, the stock was up over 5% at $198.75 in the after-hours trading session.
[recirclink id=574485]
[wallst_email_signup]

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.