Lululemon Athletica’s beats Street; same-store sales up 15%
Lululemon Athletica Inc. turned in a strong second-quarter performance, with revenue and earnings above expectations.
The athletic apparel retailer reported earnings of $125 million, or 96 cents a share, in the quarter, compared with $96 million, or 71 cents a share, in the year-ago quarter. Analysts had expected earnings of 89 cents a share.
Revenue rose 22% to $883.4 million, easily topping Street estimates of $846.83 million. Same-store sales rose 15%.
“We’re pleased with the ongoing strength across our business,” said CEO Calvin McDonald. “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.”
In July, Lululemon opened its largest, most experiential store to date, a two-level, 20,000-sq.-ft.-plus location in Chicago’s upscale Lincoln Park neighborhood.
At its annual analyst day in April, Lululemon said it now has four different store formats, including its upcoming (and now open) “experiential” store in Chicago. CEO Calvin McDonald said that by 2023, about 10% of Lululemon’s total store fleet will be considered “experiential” like the Chicago store.
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