Lululemon reported quarterly earnings data that topped Wall Street’s estimates and lifted its outlook for the year as shoppers stocked up on workout gear.
The company’s EPS improved to $2.20 per share, exceeding the analysts’ forecasts of $1.86 and outperformed the precursory reading of $1.48.
Also, its sales revenue increased to $1.87 billion, surpassing the market consensus of $1.77 billion and topping the prior record of $1.61 billion.
Consequently, same-store sales grew by 23.00%, above the 17.60% projection, as traffic remains robust both in stores and online.
Subsequently, store traffic jumped by more than 30.00%, and eCommerce traffic rose by over 40.00%.
During the conference call, executives said that the entity has a higher-income customer base that seems primarily unaffected by inflationary pressures. So, they aim to further boost shoppers’ loyalty with a membership program.
For the full year, the firm anticipates its revenue to come between $7.87 billion and $7.94 billion, up from its previous estimate of $7.61 billion to $7.71 billion.
Likewise, Lulumen raised its adjusted earnings per share guidance to a range of $9.75 to $9.90. It is higher than its prior outlook of $9.35 to $9.50.
Moreover, the apparel company’s net revenue jumped by 28.00% in North America and rose by 35.00% internationally. Hence, its total comparable sales increased by 23.00% or 25.00% on constant dollar basis.
Besides, Lululemon’s comparable store sales climbed by 16.00% or 18.00% on a continuous greenback basis.
Also, its direct-to-consumer net revenue represented 42.00% of total revenue in comparison to 41.000% for the second quarter of last year.
CEO Calvin McDonald said the business’ momentum continued in Q2. It was buoyed by strong guest response to the firm’s product innovations, community activations, and omni experience.