Lululemon (LULU) reports Q2 2020 earnings beat


Lululemon Athletica store logo and sign in Philadelphia.

Gilbert Carrasquillo | Getty Images

Lululemon on Tuesday reported surprise revenue growth, despite lockdowns during the height of the coronavirus pandemic, as stores started reopening in the fiscal second quarter and consumers stocked up on workout apparel and yoga accessories. 

Its stock seesawed in after-hours trading and was recently up less than 1%. 

CEO Calvin McDonald said the retailer is “cautiously optimistic” about the rest of the year. Lululemon is not offering a 2020 outlook at this time. Almost all, 97%, of its stores globally have reopened to-date. 

Here’s how the retailer did for the quarter ended Aug. 2 compared with what analysts were expecting, based on Refinitiv data: 

  • Earnings per share: 74 cents, adjusted, vs. 55 cents expected 
  • Revenue: $902.9 million vs. $842.5 million expected 

On an unadjusted basis, Lululemon’s net income shrank during the second quarter to $86.8 million, or 66 cents a share, from $125 million, or 96 cents a share, a year earlier. Excluding one-time charges, the company said it earned 74 cents per share, topping expectations for 55 cents. 

Its revenue rose about 2% to $902.9 million from $883.4 million a year earlier, topping expectations for $842.5 million. 

Its online sales were up 157%. 

Lululemon ended the period with $523 million in cash and cash equivalents on its balance sheet. 

At the end of June, Lululemon announced its plans to buy the at-home fitness company Mirror, which sells a $1,500 high-tech mirror to stream live workout classes. Lululemon is looking to do more in the connected fitness space, growing beyond its clothing business, especially with more consumers stuck at home during the pandemic looking for ways to break a sweat. 

As of Tuesday’s market close, Lululemon shares were up more than 51% this year. It has a market cap of $45.5 billion. 

This story is developing. Please check back for updates. 

Find the full press release from Lululemon here. 



Source link

Discover

Sponsor

Latest

Hydrogen fuel-cells, giant airbags: Construction is changing

A construction worker at an HS2 building site in the Euston area of London on May 6, 2020.ISABEL INFANTES | AFP | Getty...

Used cars drive U.S. consumer price index higher

WASHINGTON — U.S. consumer prices rose solidly in August, with the cost of used cars and trucks accelerating by the most in more...

Touring Superleggera to Make 15 Aero 3 Italian Supercars

Before you consider the new Touring Superleggera Aero 3, think of Carrozzaria Touring Superleggera itself, the Milanese coachbuilder and design house that thrived...

EU may sanction Turkey over Mediterranean dispute with Greece

Greek soldiers and tourists disembark from a ferry at the port of the tiny Greek island of Kastellorizo, the most southeastern inhabited Greek...

Lockdown Could Worsen Hearing Woes for Seniors

By Steven Reinberg HealthDay Reporter ...