Athletic apparel brand Lululemon has upped its full-year guidance after reporting strong revenue and profitability in the second quarter.
The US-Canadian company reported a 29 percent increase in net revenue to 1.87 billion dollars thanks to 28 percent growth in its North American business and 35 percent growth in its international business.
CEO Meghan Frank told investors: “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 multidimensional operating model.”
Total comparable sales increased 28 percent in the second quarter, or 29 percent on a constant dollar basis, while comparable store sales were up 24 percent.
Net income for the quarter came in at 289.5 million dollars, up from 208 million dollars a year earlier.
Lululemon raises outlook
Finance chief Meghan Frank said: “Our teams continue to deliver strong financial performance while navigating the ongoing impacts of Covid-19, supply chain disruptions and inflationary pressures.
“While we are not immune to these challenges, our omni operating model, balanced growth strategy, and unique approach toward innovation enable the positive results we are reporting today and anticipate for the full year.”
Lululemon upped its full-year revenue and profit guidance on the back of its second-quarter results.
The company now expects annual net revenue to be in the range of 7.87 billion dollars to 7.94 billion dollars. That’s up from its previous guidance of between 7.61 billion dollars and 7.71 billion dollars.
It now forecasts diluted earnings per share to be in the range of 9.82 dollars to 9.97 dollars compared to previous guidance of between 9.42 dollars and 9.57 dollars.