Lululemon profits jump in Q2, boosts outlook—again
Lululemon’s surging online growth, as well as increasing sales across China contributed to strong second-quarter earnings that topped analysts' expectations.
The apparel retailer maintained its momentum for the quarter ended July 29, with net income of $95.8 million, or 71 cents a share, compared with $48.7 million, or 36 cents a share, in the second quarter of 2017. This beat analysts’ forecast of $65.8 million, and 49 cents per share.
Revenue rose 25% to $723.5 million, an increase of 25% compared to $581 million a year ago. This easily topped the $668 million expected by analysts.
Same-store sales were up 20%, surpassing analysts forecasts of 9.6% growth. This also included a 48% jump for Lululemon's direct-to-consumer revenue. In addition, Asia sales rose 55% on a comparable basis, including a 200% surge in sales through its new China e-commerce platform.
"We’re pleased to see the great results of Q2 across all parts of our business now extending into the current quarter,” Stuart Haselden, COO, said. “This ongoing success positions us to achieve our 2020 goals and beyond.”
Looking to the third quarter, the company expects net revenue to range between $720 million and $730 million based on a total comparable sales increase in the low teens. Earnings per share are expected to be in the range of $0.65 to $0.67.
For the full year, Lululemon boosted its earnings guidance again to range of $3.185 billion to $3.235 billion based on a total comparable sales increase in the low teens. Earnings per share are expected to be in the range of $3.45 to $3.53 for the full year, up from a range of $3.10 to $3.18 projected in June.
The apparel retailer maintained its momentum for the quarter ended July 29, with net income of $95.8 million, or 71 cents a share, compared with $48.7 million, or 36 cents a share, in the second quarter of 2017. This beat analysts’ forecast of $65.8 million, and 49 cents per share.
Revenue rose 25% to $723.5 million, an increase of 25% compared to $581 million a year ago. This easily topped the $668 million expected by analysts.
Same-store sales were up 20%, surpassing analysts forecasts of 9.6% growth. This also included a 48% jump for Lululemon's direct-to-consumer revenue. In addition, Asia sales rose 55% on a comparable basis, including a 200% surge in sales through its new China e-commerce platform.
"We’re pleased to see the great results of Q2 across all parts of our business now extending into the current quarter,” Stuart Haselden, COO, said. “This ongoing success positions us to achieve our 2020 goals and beyond.”
Looking to the third quarter, the company expects net revenue to range between $720 million and $730 million based on a total comparable sales increase in the low teens. Earnings per share are expected to be in the range of $0.65 to $0.67.
For the full year, Lululemon boosted its earnings guidance again to range of $3.185 billion to $3.235 billion based on a total comparable sales increase in the low teens. Earnings per share are expected to be in the range of $3.45 to $3.53 for the full year, up from a range of $3.10 to $3.18 projected in June.