By Claudia Assis
Lululemon Athletica Inc. stock rallied 10% in the extended session Thursday after the retailer reported quarterly earnings and sales well above Wall Street's expectations and said it was seeing "momentum" with its sales.
Lululemon (LULU) said it earned $290 million, or $2.26 a share, compared with $208 million, or $1.59 a share, in the second quarter of 2021.
Adjusted for one-time items, the retailer earned $2.20 a share.
Sales rose 29% to $1.9 billion, the company said, including a 28% rise in North America and a 30% jump in direct-to-consumer sales. Same-store sales rose 23%, Lululemon said.
Analysts polled by FactSet expected the company to post adjusted earnings of $1.86 a share on sales of $1.77 billion.
Lululemon guided for third-quarter revenue between $1.780 billion and $1.805 billion, which would be a three-year compound annual growth rate of about 25%, the company said. EPS for the quarter was seen in a range between $1.90 and $1.95.
For 2022, the company expects net revenue between $7.865 billion and $7.940 billion, and adjusted EPS between $9.75 and $9.90. The analysts surveyed by FactSet expect 2022 sales to hit $7.7 billion, and EPS for the year is seen at $9.44.
Lululemon stock has dropped 25% so far this year, compared with losses of around 17% for the S&P 500 index .
(END) Dow Jones Newswires
09-02-22 0724ETCopyright (c) 2022 Dow Jones & Company, Inc.