Shares of Lululemon Athletica Inc. (LULU) jumped over 10% 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 or $1.59 per share from $86.8 million or $0.66 per share last year.
Adjusted earnings for the quarter were $299.2 million or $1.65 per share, up from $135.9 million or $0.74 per share last year. Analysts polled by Thomson Reuters estimated earnings of $1.19 per share for the quarter.
Revenues for the quarter jumped 61% to $1.45 billion from $902.9 million last year. Analysts had a consensus revenue estimate of $1.33 billion 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 to $1.43 billion and adjusted earnings of $1.33 to $1.38 per share. Analysts currently estimate earnings of $1.32 per share on revenues of $1.32 billion.
For full year 2021, the company now expects revenue of $6.19 billion to $6.26 billion and adjusted earnings of $7.38 to $7.48 per share. Previously, the company expected revenues of $5.825 billion to $5.905 billion and adjusted earnings of $6.73 to 6.86 per share. Analysts currently estimate earnings of $6.91 per share on revenues of $5.94 billion.
LULU closed Wednesday’s trading at $380.85, down $5.61 or 1.45%, on the Nasdaq. The stock, however, gained $41.23 or 10.83% in the after-hours trade.
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