On Thursday, Lululemon Athletica announced its high second-quarter earnings report, raising its full-year guidance amid great sales.
Its stock price went up by 1.20% to $381.26 per share on August 31. Likewise, it is expected to rise by 1.51% to $387.00 apiece in the upcoming session.
The company’s earnings per share jumped to $2.68, topping analysts’ $2.53 forecasts. Also, it is better than the previous $2.28 data.
Moreover, the revenue of Lululemon climbed to $2.20 billion, surpassing the $2.17 billion consensus. Therefore, it is higher than the last $2.00 billion reading.
The athletic wear retailer anticipates sales to hit between $9.51 billion to $9.57 billion for the fiscal year. It rose from the previous estimates of $9.44 billion to $9.51 billion due to robust sales and profit in Q2.
Additionally, it expects profits to be $12.02 to $12.17 a share this year. It is higher compared to the previous forecast of $11.74 to $11.94 apiece.
The gains of Lululemon in the top and bottom lines were driven by solid international growth. The athletic apparel company experienced a 52.00% sales jump outside North America and had a 61.00% increase in China. It marked a 30.00% growth in the region from last year’s quarter.
Furthermore, its finance chief, Meghan Frank, stated they only witnessed a little volatility during the quarter. Despite China’s economic slowdowns, their sales growth was still considered strong and healthy.
Fall Line from Lululemon Released
Many fans of the clothing pieces of Lululemon highly anticipate its release of new lines, especially for fall.
Most shoppers aim to get new additions to their outfits or tweak their fall athleisure collection. Recently, the apparel company released a new line that includes comfy tops, jackets, functional bottoms, and even accessories.
Lululemon released 12 pieces as its new arrivals. It rolled out its new Wunder Puff jacket and vest, wool beanies, tennis and yoga wear, and pants.
According to CEO Calvin McDonald, e-commerce and in-store sales have excellent performance in China.
He added that it now has 107 stores nationwide and plans to open 35 worldwide. The majority are to be established in the region.
