Lululemon raises full year outlook after strong second quarter
Fitness clothing brand Lululemon has raised its full year guidance following a strong second quarter performance.
In the three-month period, net revenue increased by 29% to $1.9 billion while direct to consumer revenue climbed by 30% as the company experienced strong growth in the US and internationally.
Calvin McDonald, Lululemon chief executive, said: “The momentum in our business continued in the second quarter, fuelled by strong guest response to our product innovations, community activations, and omni experience. I would like to express my gratitude to our teams around the world for their continued dedication and enthusiasm for our brand, which enabled us to generate this elevated level of performance.”
Looking ahead to the results of its full year, Lululemon now anticipates that net revenue will be in the range of $7.865 billion to $7.940 billion compared to a previous estimate of $7.610 billion and $7.710 billion. Meanwhile, diluted earnings per share are expected to be in the range of $9.82 to $9.97 compared to a prior expectation of $9.42 and $9.57.
Meghan Frank, chief financial officer of Lululemon, added: “Despite the challenges around us in the macro-environment, guest traffic in our stores and on our ecommerce sites remains robust, which speaks to the strength of our multi-dimensional operating model. I am pleased with our start to the third quarter and believe we are well positioned for the fall and holiday seasons.”