Lululemon Raises Full-Year Guidance

Lululemon, the athletic apparel retailer, reported an 18% increase in both sales and profit, surpassing Wall Street’s expectations. As a result, the company has raised its full-year guidance.

The revised sales forecast for the fiscal year is now between $9.51 billion and $9.57 billion, compared to the previous range of $9.44 billion to $9.51 billion. Additionally, Lululemon expects profits to be between $12.02 and $12.17 per share, up from the previous range of $11.74 to $11.94.

For the current quarter, the retailer predicts earnings per share of $2.23 to $2.28 and sales of $2.17 billion to $2.19 billion, aligning with analysts’ expectations.

Second Quarter Performance

In the second fiscal quarter, Lululemon’s performance exceeded Wall Street’s projections:

• Earnings per share: $2.68 vs. $2.54 expected
• Revenue: $2.21 billion vs. $2.17 billion expected

The company experienced an 18% increase in sales, reaching $2.21 billion compared to $1.87 billion in the same period last year. However, Lululemon fell short of same store sales expectations, with a growth of 11% instead of the estimated 12.1%.

Lululemon’s reported net income for the quarter ending July 30 was $341.6 million, or $2.68 per share, up from $289.5 million, or $2.26 per share, in the previous year. The gross margin of 58.8% was in line with analysts’ expectations.

Despite the positive results, Lululemon continues to face challenges with inventory levels, which were still elevated at $1.7 billion, a 14% increase compared to the same quarter last year.

This story is developing. Please check back for updates.