A woman jogs past a Lululemon retail store.
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Lululemon on Thursday reported quarterly earnings that topped analysts’ expectations, sending the athletic apparel retailer’s shares up as much as 5% in after-hours trading.
Here’s how Lululemon did for its fiscal second quarter compared with what analysts were expecting, based on Refinitiv estimates:
- Earnings per share: 96 cents vs. 89 cents expected
- Revenue: $883.35 million vs. $846.83 million expected
- Same-store sales: up 15% vs. growth of 12.2% expected
CEO Calvin McDonald said in a statement he sees “significant runway” ahead of the company.
Net income during the period ended Aug. 4 grew to $125 million, or 96 cents per share, from $95.77 million, or 71 cents a share, a year ago. Lululemon earned 7 cents a share better than analysts had forecast, based on a poll by Refinitiv.
Net sales climbed 22% to $883.35 million from $723.5 million a year ago, beating expectations of $846.83 million.
The company said overall same-store sales were up 15%, better than expected growth of 12.2%. Within that figure, sales at stores rose 10%, while direct-to-consumer sales grew 30%. Lululemon ended the quarter with 460 locations.
Earlier this summer, the company opened its biggest store ever in Chicago and is planning to roll out more like it. This is part of the company’s growth strategy, which has included launching into new categories like personal care.
Lululemon in April said it plans to double its men’s and online sales over next five years, targeting annual revenue growth in the low teens during that timeframe. It’s also targeting quadrupling international revenues by 2023.
Lululemon shares are up more than 54% so far this year.