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Lululemon Athletica Announces Better than Expected Q2 Fiscal 2023 Results, LULU Shares Up Over 1.5%
Canadian multinational athletic apparel retailer Lululemon Athletica Inc (NASDAQ: LULU) released its Q2 2023 financial results and the full-year outlook on Thursday. According to the announcement, the company’s operations continued to strengthen during the second quarter amid a dynamic operating environment. During the second quarter, Lululemon Athletica reported earnings per share (EPS) of $2.68 compared to $2.54 expected by analysts surveyed by Refinitiv. Additionally, the company announced a revenue of about $2.21 billion compared to the $2.17 billion expected by Wall Street analysts.
As a result, LULU shares closed Thursday trading at $381.26, up 1.20 percent from the day’s opening price. The gains in LULU shares extended during the after-hours with a bump of about 1.51 percent, hence registering a YTD performance of approximately 19 percent.
Lululemon Athletica Q2 2023 Performance
During the second quarter, the company announced that its net revenue in North America increased by about 11 percent compared to approximately 52 percent internationally. The comparable store sales increased by about 7 percent during the second quarter, whereas the direct-to-consumer net revenue increased by 15 percent. The company’s Chief Executive Officer, Calvin McDonald, attributed its performance to widened markets amid heightened economic uncertainty.
“… I am proud of how our teams continue to deliver on our vision and offer an exciting pipeline of new products and experiences to our guests around the world. Our continued ability to gain market share and bring new customers into the brand illustrates the significant runway ahead for Lululemon,” McDonald noted.
By the end of the second quarter, Lululemon Athletica registered gross profits of about $1.3 billion, up approximately 23 percent YoY. Notably, the company returned about $191.7 million to shareholders through a share buyback program. Furthermore, the company expects to report more revenue in full-year results, especially after ending the quarter with a total of 672 stores.
“… We are excited about our opportunities in the second half of the year and look forward to continue delivering on our Power of Three ×2 growth plan,” Meghan Frank, Chief Financial Officer at Lululemon noted.
Having ended the second quarter with about $1.1 billion in cash and cash equivalents, the company expects to report a revenue of $2.165 billion to $2.190 billion during the third quarter, hence representing a growth of between 17 percent to 18 percent. Additionally, the company expects to report earnings per share of between $2.23 to $2.28 during the third quarter.
For the full year, Lululemon expects to report a revenue of between $9.510 billion to $9.570 billion, thus representing a growth of about 17 percent to 18 percent.
Lululemon Athletica Announces Better than Expected Q2 Fiscal 2023 Results, LULU Shares Up Over 1.5%
