Lululemon beats as online sales provide a boost (LULU)

Glassdoor

Canadian yoga and leisure apparel maker Lululemon Athletica Inc reported a quarterly profit and revenue on Thursday that topped expectations, as same-store sales increased, particularly online.

The company reported earnings of $48.7 million, or 36 cents per share in the second quarter ended July 30. This exceeded the 35 cents per share analysts had forecast, according to Thomson Reuters I/B/E/S. Adjusted diluted earnings, which excluded the impact of its Ivivva restructuring costs, was 39 cents a share.

Revenue rose 13 percent to $581.1 million, topping the estimated $567.79 million analysts had predicted.

Shares, which closed at $57.55 ahead of the results, rose 7.7 percent in after-market trading.

Sales at stores open for more than a year grew 7 percent, above the average 4 percent rise 27 analysts had expected, according to Thomson Reuters data.

Online sales from its website soared 30 percent on a constant dollar basis. Excluding an online warehouse sale during the quarter, net revenue rose 16 percent online.

Vancouver-based Lululemon, which announced it was closing its money-losing Ivivva stores in June, raised its forecast and now said it was expecting to earn between $2.545 billion and $2.595 billion in full-year net revenue, up from its previous outlook of $2.53 billion to $2.58 billion.

Full-year adjusted diluted earnings per share, excluding the impact of Ivivva, was expected to come in between $2.35 and $2.42. 

(Reporting by Solarina Ho; Editing by Sandra Maler and Alistair Bell)

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