On Thursday, Lululemon Athletica Inc. surged as its second-quarter earnings exceeded estimates.
On the Frankfurt Stock Exchange, Lululemon soared 13.34% or 42.50 points to $361.05 per share.
The Canadian-American company is a designer, distributor, and retailer of sports apparel and accessories.
Moreover, Lululemon has a market capitalization of $41.93 billion and shares outstanding of $1.30 million.
Then, the firm’s second-quarter net income increased to $208.10 million, higher than the $86.80 million in the same period last year.
Accordingly, the Canada-based company’s earnings per share climbed to $1.65 from the forecasted $1.19.
Likewise, Lululemon’s second-quarter revenue soared 61.00% to $1.45 billion from the previous record of $902.90 million.
The recently posted data also edged up from the expected $1.34 billion.
Lululemon expected that the third-quarter revenue would reach within the range of $1.40 billion to $1.43 billion.
Moreover, the adjusted earnings per share for the next quarter will be between $7.38 and $7.48.
Meanwhile, analysts forecasted $5.94 billion in revenue and $6.91 in earnings per share.
However, the company currently suffers from supply constraints due to the backlogged ports.
The conflict is caused by the scarcity of cargo containers and truck drivers.
In response, Lululemon prioritizes air freight to ease the supply bottleneck.
In addition, the company will reopen its factories in Southern Vietnam later this month.
Meanwhile, the demand for the company’s leggings and sports bras hiked despite the eased pandemic measures.
The surge in sportswear demand spurred the sales of Lululemon and its rivals Nike and Inc. and Under Armour Inc.
Nike Inc. inched up 1.80% or 2.44 points to $138.18 per share.
Similarly, Under Armour Inc. improved 0.27% or 0.05 points to 18.74 per share.
European Stocks Slide ahead ECB Meeting
Meanwhile, European stocks weakened ahead of the upcoming European Central Bank Meeting.
Moreover, the pan-European STOXX 600 index fell 0.52% or 2.42 points to $465.45 per share.
Likewise, the European STOXX 50 index tumbled 0.42% or 17.56 points to $4,159.59 per share.
On the Frankfurt Stock Exchange, the MDAX Performance index edged down 0.01% or 5.02 points to $35,939.03 per share.
Accordingly, the DAX index declined 0.29% or 45.00 points to $15,565.28 per share.
Then, the FTSE All-Share index dropped 1.02% or 41.72 points to $4,048.04 per share.
Consequently, the FTSE 100 index plummeted 1.11% or 79.05 points to $7,016.48 per share.
In addition, the CAC 40 index plunged 0.30% or 19.88 points to $6,649.01 per share.
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