Lululemon Athletica Inc. (NASDAQ: LULU) reported its second quarter earnings and beat estimates.
The athletic apparel company reported revenue of $581.1 million, a 13 percent increase year over year, and beating analysts’ estimates by $13 million. The company reported an EPS increase of $0.39 per share only slightly higher than last year’s second quarter of $0.38 per share, and beating analysts’ estimates $0.04. Total comparable sales increased by 7 percent, mainly due to direct to customer revenue which increased by 29 percent.
In the second quarter, Lululemon repurchased 1.5 million of its own common stock at an average cost of $52.93 per share.
Laurent Potdevin, CEO, lululemon, commented: "Our performance reflects the growing global consumer response to lululemon's unique position as the leading brand that defines an active, mindful lifestyle. Through continuing to deliver category-defining product innovation, we are creating experiences that our guests, both existing and new, desire. This strong brand momentum reinforces my confidence in our long-term strategy."
Potdevin added, "The acceleration that we have seen across the business in the second quarter enables us to take another positive step on our path towards achieving $4 billion in revenue by 2020.
For the third quarter, the company expects revenue to increase to $605 million to $615 million. The company expects an EPS loss from $0.39 this quarter down to $0.33 to $0.35 for the third quarter.
As for the fiscal year, the company expects revenue to in the range of $2.54 billion to $2.59 billion. The company expects EPS in the range of $2.04 to $2.11 for the full year.