Lululemon Athletica Inc. (NASDAQ: LULU)
Athletic apparel maker, Lululemon Athletica, came out with upbeat second-quarter earnings and revenue after markets closed on Thursday. The Vancouver-based company reported a 95.9% growth in quarterly profit, way higher than Wall Street expected. Revenue also jumped 25% year over year, with same-store sales rising 20%.
LULU stock was up $14.80, or 10.80% to trade at $151.10 in pre-market trading on Friday. Investors are expected to trade even more heavily on the stock during the normal trading hours. The shares have surged 74% year-to-date through Thursday’s close.
LULU Earnings & Outlook
Net income during the quarter was $98 million, or $0.71 per share, up from $49 million, or $0.36 per share, in the same period last year. Adjusted for special items, the company earned $0.71 per share. Sales jumped $724 million, an increase of 25% from $581 million in the earlier-year quarter.
Analysts polled by Thompson Reuters were expecting earnings of $0.49 per share on sales of $668 million. For fiscal 2018, the company sees net revenue of between $3.185 billion and $3.235 billion, compared with its previous outlook of $3.04 billion to $3.075 billion.
Lululemon Athletica Executive Comments
Glenn Murphy, Chairman of the Board, made the following remarks during the company’s earnings conference call: “We had a very strong second quarter. And because of that, I thought I’d just make a couple of brief remarks at the beginning and then pass the call on to a number of speakers you’re going to hear from today, including our new CEO, Calvin McDonald. Obviously, I want to acknowledge the performance. The second quarter of this fiscal year was very strong, and it was very strong across all facets of the business, whether it’s across different product categories, our channels of contact with our guests and across all our markets. It was just a very impressive second quarter result for Lululemon.”
Lululemon Athletica Inc. Company Profile
Lululemon Athletica Inc., is an athletic apparel company that designs, distributes, and retails athletic apparel and accessories for women, men, and female youth. It operates through two segments, Company-Operated Stores and Direct to Consumer.
The company offers pants, shorts, tops, and jackets for healthy lifestyle and athletic activities, such as yoga, running, and training, as well as other sweaty pursuits; and athletic wear for female youth. It also provides fitness-related accessories, including bags, socks, underwear, yoga mats and equipment, and water bottles.
It sells its products through a chain of company-operated stores; outlets and warehouse sales; a network of wholesale accounts, such as yoga studios, health clubs, and fitness centers; temporary locations, including seasonal stores; license and supply arrangements; and showrooms, as well as directly to consumer through mobile apps, and lululemon.com and ivivva.com e-commerce sites.
As of January 28, 2018, it operated 404 company-operated stores under the Lululemon and Ivivva brands in the United States, Canada, Australia, the United Kingdom, New Zealand, China, Singapore, Japan, Ireland, South Korea, Germany, and Switzerland. Lululemon Athletica Inc. was founded in 1998 and is based in Vancouver, Canada. –CNNMoney
