Lululemon (LULU) Q2 2022 earnings


Pedestrians pass by a Lululemon store.

Scott Mlyn | CNBC

Lululemon Athletica Inc. on Thursday reported quarterly earnings and revenue that beat analysts’ expectations.

Shares of the company were up around 8% in after hours trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $2.20, adjusted, vs. $1.87 cents expected
  • Revenue: $1.87 billion vs. $1.774 billion expected

Same store sales grew 23% which beat StreetAccount’s estimate of 17.6%. Net sales rose 29% percent to $1.87 billion. The company said that traffic remains strong both in stores and online, even as surging inflation cramps consumers’ spending.

“Despite the challenges around us in the macro-environment, guest traffic in our stores and on our e-commerce sites remains robust, which speaks to the strength of our multi-dimensional operating model,” Chief Financial Officer Meghan Frank said in a news release.

The company also raised its full-year guidance. It said it now expects 2022 revenue of between $7.865 billion and $7.940 billion, up from the range of $7.610 billion to $7.710 billion it stated last quarter. The company also raised its adjusted earnings per share outlook to a range of $9.75 to $9.90, from last quarter’s guidance of $9.35 to $9.50 adjusted.

The release also maintained the company’s long-term outlook of doubling net revenue to $12.5 billion from from 2021 to 2026. The plan includes an expansion of its menswear business, footwear, and membership-based fitness classes. Upon the plan’s announcement in the spring, some analysts were skeptical about Lululemon’s ability to achieve the lofty longer-term target.

Read the earnings release here.

This is a developing story. Check back for updates.



Image and article originally from www.cnbc.com. Read the original article here.

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