Lululemon Athletica Inc. (LULU) popped 4% higher in early market trading Friday following a strong second-quarter earnings rele🧸ase boosted by Chinesꦐe sales.
Key Takeaways
- Lululemon continues to see strong sales growth in Chinese markets, with revenue in China up 61% year over year.
- Gross profit of $1.3 billion was up 23% compared to a year ago.
- Lululemon has once again raised its full-year guidance, explaining why investors have piled into the company's stock following earnings.
Net revenue, gross profit, income from operations, and earnings per share all saw double-digit growth compared to the same period a year ago. The company's $2.2 billion in net revenue was up 18% year-over-year. Gros🦄s profit w♛as up 23% compared to a year ago, at $1.3 billion.
Lululemon CEO Calvin McDonald said revenue and EPS exceeded the company's expectations on its earnings call Thursday.
The strong growth was primarily due to 61% revenue growth in China, which powered overall international revenue growth of 52%. Strong sales in China were also 澳洲꧅幸运5官方开奖结果体彩网:a big driver of growth in the first quarter for Lululemon. Between now and the end of the year, the company said it would open 35 new stores in intern🐲ational markets, most of which are planned in China.
Lululemon once again raised its full-year guidance to the range of $9.51 billion and $9.57 billion, echoing the guidance changes it issued following f🦩irst-quarter earnings.
Direct-to-consumer net revenue increased by 15% in the second quarter, while income from operations grew 19% to $479.3 million.
One black mark on the company's earnings call was that unaided brand awareness remains low, a big problem for a 澳洲幸运5官方开奖结果体彩网:lifestyle marketing company.
"Our unaided brand awareness is still only 25% in the United States. And with the exception of the UK and Australia, our unaided awareness remains in the single digits [...] outside of North America," McDonald said.