WASHINGTON - Shares of Lululemon Athletica Inc. (LULU) jumped over 10 percent in extended trading session on Wednesday after the company reported a second-quarter profit that surged from a year ago, driven largely by strong revenues. Both earnings and revenues for the three-month period trumped Wall Street estimates. Moving ahead, the yoga apparel retailer lifted its outlook for the full year.
Vancouver-based Lululemon’s second-quarter profit rose to 208.1 million dollars or 1.59 dollar per share from 86.8 million dollars or 0.66 dollar per share last year.
Adjusted earnings for the quarter were 299.2 million dollars or 1.65 dollars per share, up from 135.9 million dollars or 0.74 dollars per share last year. Analysts polled by Thomson Reuters estimated earnings of 1.19 dollars per share for the quarter.
Q2 revenues Lululemon jumped 62 percent
Revenues for the quarter jumped 61 percent to 1.45 billion dollars from 902.9 million dollars last year. Analysts had a consensus revenue estimate of 1.33 billion dollars for the quarter.
Commenting on the results, CEO Calvin McDonald said, “Our second quarter results demonstrate the continued momentum across the business, and how we are living into our Power of Three growth plan and Impact Agenda commitments. We launched exciting new products, experienced strength across channels and geographies, and announced new partnerships that will allow us to become a leader in product sustainability.”
Looking forward to the third quarter, the company expects revenues of 1.40 billion dollars to 1.43 billion dollars and adjusted earnings of 1.33 dollars to 1.38 dollars per share. Analysts currently estimate earnings of 1.32 dollars per share on revenues of 1.32 billion dollars.
For full year 2021, the company now expects revenue of 6.19 billion dollars to 6.26 billion dollars and adjusted earnings of 7.38 dollars to 7.48 dollars per share. Previously, the company expected revenues of 5.825 billion dollars to 5.905 billion dollars and adjusted earnings of 6.73 dollars to 6.86 dollars per share. Analysts currently estimate earnings of 6.91 dollars per share on revenues of 5.94 billion dollars.
LULU closed Wednesday’s trading at 380.85 dollars, down 5.61 dollars or 1.45 percent, on the Nasdaq. The stock, however, gained 41.23 dollars or 10.83 percent in the after-hours trade. (DPA)