Why Lululemon Is Friday’s Big Earnings Winner
Lululemon Athletica shares saw a great gain on Friday after the company announced that its most recent quarterly results Thursday afternoon.
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Lululemon Athletica Inc. (NASDAQ: LULU) shares saw a great gain early Friday after the company announced its most recent quarterly results Thursday afternoon. The company said that it had $0.71 in earnings per share (EPS) and $724 million in revenue for the fiscal second quarter. That compares with consensus estimates of $0.49 in EPS and $669 million in revenue, as well as the $0.36 per share and $581.05 million posted in the same period of last year.
During the most recent quarter, total comparable sales increased 20%, or increased 19% on a constant dollar basis. Comparable store sales increased 10%, or increased 10% on a constant dollar basis.
At the same time, direct to consumer net revenue increased 48%, or 47% on a constant dollar basis. Excluding the impact of an online warehouse sale in 2017, direct to consumer net revenue increased 66%, or increased 65% on a constant dollar basis.
Looking ahead to the fiscal third quarter of 2018, the company expects to see EPS in the range of $0.65 to $0.67 and net revenue between $720 million and $730 million, with comparable sales increasing in the low teens on a constant dollar basis.
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The consensus estimates call for $0.64 in EPS and $708.62 million in revenue, for the coming quarter.
Glenn Murphy, board chair, commented:
We are very pleased with the consistent performance of our business. On behalf of the Board, I want to welcome Calvin McDonald to lululemon and thank our management team for delivering these incredible results.
Shares of Lululemon closed Thursday at $137.00, with a consensus analyst price target of $130.82 and a 52-week trading range of $57.19 to $140.42. Following the announcement, the stock was up over 10% at $151.50 in early trading indications Friday.
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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.
