Allocates of Lululemon Athletica jumped more than 7 percent in after-hours switch Thursday after the athletic apparel retailer reported second-quarter earnings and tag sales that topped analysts’ expectations, boosted by e-commerce sales enlargement of nearly 50 percent.
The company also raised its profit and yard sales outlook for the full year.
This earnings report is the first for new CEO Calvin McDonald, who connected Lululemon from LVMH’s Sephora makeup business. McDonald refunded Laurent Potdevin, who resigned earlier this year after withdrawing “short of [Lululemon’s] standards of conduct,” the company said at the time.
On a demand with analysts and investors Thursday afternoon, McDonald said Lululemon thinks fitting continue to expand its men’s business and outerwear category, which includes numerous big-ticket items. The push into men’s is expected to be a big growth driver for Lululemon touching forward, according to industry analysts.
For female shoppers, Lululemon spearheaded a motion toward “athleisure” apparel in the U.S. and has maintained a loyal base of customers for its leggings and yoga raiment.
Lululemon continues to see strong traffic at its stores in North America, a vend where brands like Nike and Under Armour have been struggling to imprison growing of late, hurt by the bankruptcies of Sports Authority and other wholesalers in the U.S. Lululemon also has an pushy expansion strategy to take its business global, with a heavy stress on China.
Net income for the quarter ended July 29 was $95.8 million, or 71 cents per stake, compared with $48.7 million, or 36 cents a share, a year ago. Excluding one-time notices, Lululemon earned 71 cents a share, while analysts were racket for earnings of 49 cents per share, according to a poll by Thomson Reuters.
Receipts rose to $723.5 million from $581 million a year ago, again in advance of the $668 million expected by analysts.
Sales at Lululemon stores unfilled for at least 12 months were up a staggering 20 percent during the fifteen minutes. Analysts were forecasting same-store sales growth of 9.6 percent.
The comrades said some of its strongest categories were women’s and men’s pants, hold responsibles to new, versatile fabrics that encourage customers to wear those ingredients at work, at the gym and out at dinner. It said its accessories business — for merchandise like damp bottles and gym bags — was the strongest in five years.
Looking to the full year, Lululemon now expects to procure between $3.45 and $3.53 a share, compared with a prior spread of between $3.10 and $3.18 per share. It said revenue should downfall between $3.19 billion and $3.24 billion, up from a prior targeted roam of between $3.04 billion and $3.08 billion.
For the third and current shelter, Lululemon is calling for revenue of as much as $730 million, earning between 65 and 67 cents per helping.
Lululemon is “clearly taking share from traditional athletic thespians such as [Under Armour] by having more fashionable quality lifestyle attire,” B.Riley FBR analyst Susan Anderson told CNBC.
As of Thursday’s shop close, Lululemon shares are up about 74 percent so far this year, bringing the retailer’s sell cap to about $18.6 billion.
— CNBC’s Courtney Reagan contributed to this disclosing.