Lululemon Athletica Inc. on Friday posted second-quarter results that beat Wall Street’s estimates by 8 cents.
For the three months ended July 29, the company said net income attributable to Lululemon shareholders rose 49.1 percent to $57.2 million, or 39 cents a diluted share, from $38.4 million, or 26 cents, in the year-ago quarter. Wall Street’s consensus was 31 cents. Net revenues for the period rose 33.1 percent to $282.6 million from $212.3 million, while comparable-store sales rose 15 percent on a constant-dollar basis.
For the six months, net income rose 44.8 percent to $103.9 million, or 71 cents a diluted share, on a net revenue gain of 42.4 percent to $568.3 million.
Christine Day, chief executive officer, told Wall Street analysts in a conference call, “We remain confident in our ability to lead the market and our segment with our growth plan unaffected by changing market dynamics. Our focus continues to be on our own internal capabilities, innovation and investment in our future. Our primary focus for innovation is evolving our product incrementally as we have been doing to fit function, fabric and fashion detailing. The base business is incredibly healthy, is the tremendous proven growth lever, and we have a long runway ahead of us.”
Day also said the company is continuing its foray into international markets. The London showroom is open and a second Hong Kong showroom is expected to open in one month, Day noted.
She also discounted the competitors entering the market, noting that while imitation is the sincerest form of flattery, it is “impossible to copy a personality.”
For the third quarter, the company said it expects diluted earnings per share in the range of 34 cents to 36 cents on a revenue range of between $300 million to $305 million. For the full fiscal year, diluted EPS is expected between $1.76 and $1.81 on a revenue range of $1.35 billion to $1.36 billion.