Lululemon posts adjusted diluted EPS of 0.39 dollar in Q2

Lululemon Athletica reported diluted earnings per share of 0.36 dollar for the second quarter of fiscal 2017 against 0.39 dollar reported in the same quarter last year. Excluding the impact of the Ivivva restructuring, the company said adjusted diluted earnings per share were 0.39 dollar compared to 0.38 dollar in the second quarter of 2016. Net revenue for the quarter was 581.1 million dollars, an increase of 13 percent at current and constant exchange compared to the second quarter of fiscal 2016. Total comparable sales increased 7 percent on current and constant exchange basis.

Commenting on the second quarter trading, Laurent Potdevin, CEO, Lululemon, said in a statement: "The acceleration that we have seen across the business in the second quarter enables us to take another positive step on our path towards achieving 4 billion dollars in revenue by 2020."

Financial highlights of the quarter

The company’s comparable store sales increased 2 percent at current and constant dollar. Direct to consumer net revenue increased 29 percent or 30 percent on a constant dollar basis. The company said, excluding the impact of online warehouse sale held during the quarter, direct to consumer net revenue increased 15 percent or 16 percent on a constant dollar basis. The company ended the quarter with 421 stores.

Gross profit was 297.4 million dollars, an increase of 17 percent compared to the second quarter of fiscal 2016 and adjusted gross profit was 299.7 million dollars, an increase of 18 percent. Gross margin was 51.2 percent, an increase of 180 basis points, while adjusted gross margin was 51.6 percent, an increase of 220 basis points.

Q3 same-store sales expected to rise mid single digits

For the third quarter of fiscal 2017, the company expects net revenue to be in the range of 605 million to 615 million dollars based on a total comparable sales increase in the mid-single digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of 0.33 dollar to 0.35 dollar for the quarter. Excluding the impact of the Ivivva restructuring, Lululemon expects adjusted diluted earnings per share to be in the range of 0.50 dollar to 0.52 dollar for the quarter.

For the full fiscal 2017, net revenue is expected to be in the range of 2.545 billion dollars to 2.595 billion dollars based on a total comparable sales increase in the low-single digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of 2.04 dollars to 2.11 dollars for the full year. Excluding the impact of the Ivivva restructuring, Lululemon expects adjusted diluted earnings per share to be in the range of 2.35 dollars to 2.42 dollars for the year.

Picture:Facebook/Lululemon