Lululemon Earnings Stretch to Another Win
Lululemon Athletica shares rose Friday in the wake of a better-than-expected fiscal second-quarter report late on Thursday.
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When Lululemon Athletica Inc. (NASDAQ: LULU) reported its fiscal second-quarter late on Thursday, the company posted $0.39 in earnings per share (EPS) and $581.1 million in revenue. That compared with consensus estimates of $0.35 in EPS and revenue of $567.8 million.
During this quarter, total comparable sales increased 7%. Although, comparable store sales increased only 2%, direct to consumer net revenue increased 29%, or about 30% on a constant dollar basis.
In terms of the guidance for the coming quarter, management expects to see EPS in the range of $0.50 to $0.52 and net revenues between $605 million and $615 million. The consensus estimates are $0.52 in EPS and $608.77 million in revenue for the fiscal third-quarter.
On the books, Lululemon ended the quarter with $721.2 million in cash and cash equivalents, up from $535.3 million at the end of the second quarter of fiscal 2016.
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Laurent Potdevin, Lululemon CEO, commented:
Our performance reflects the growing global consumer response to lululemon’s unique position as the leading brand that defines an active, mindful lifestyle. Through continuing to deliver category-defining product innovation, we are creating experiences that our guests, both existing and new, desire. This strong brand momentum reinforces my confidence in our long-term strategy.
Shares of Lululemon were last seen up about 6% at $61.20 on Friday, with a consensus analyst price target of $62.17 and a 52-week range of $47.26 to $72.70.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
