Lululemon almost doubles Q2 profit
Canadian yogawear retailer Lululemon Athletica has hailed a "great" set of results for the second quarter, the first under new CEO Calvin McDonald, with highlights including a near doubling of net income in the period.
For the quarter ended 29 July, net income totalled $95.8m from $48.7m last year, sending shares soaring my almost 9% in after-hours trading yesterday (30 August). Gross margin was 54.8%, up 360 basis points compared to the second quarter of fiscal 2017.
The Vancouver, British Columbia-based company reported a 25% hike in net revenue, with sales totalling $723.5m, compared to $581m in the year-ago period. Total comparable sales increased 20%, while comparable store sales were up 10% for the period. Direct-to-consumer sales jumped 48%.
"We're pleased to see the great results of Q2 across all parts of our business now extending into the current quarter," said COO Stuart Haselden. "This ongoing success positions us to achieve our 2020 goals and beyond. Above all, we want to thank our educators and teams around the world who make this possible."
McDonald added: "I'm excited to work with the leadership team to build upon this considerable success. We have an incredible growth trajectory in front of us, given the strength of the brand and our people."
The former Sears Canada boss was named CEO last month, following the departure of Laurent Potdevin in February.
For the third quarter, the company is forecasting net revenues in the range of $720m-$730m based on a total comparable sales increase in the low teens on a constant dollar basis. Diluted earnings per share are expected to be in the range of $0.65 to $0.67.
For the full year, net revenue is expected to be in the range of $3.19bn-$3.24bn based on a total comparable sales increase in the low teens on a constant dollar basis. Diluted earnings per share are expected to be in the range of $3.45 to $3.53.