Lululemon gets mixed reception as sales stay strong
Nicky J Sims
Lululemon Athletica Inc. (NASDAQ:LULU) was mixed after the close on Thursday as the yoga wear maker managed to meet same-store-sales expectations where peers have seen a slowdown.
For the third quarter of 2023, the company expects revenue to be in the range of $2.165B to $2.190B, representing growth of 17% to 18%, compared to the estimate of $2.17B. Diluted earnings per share are expected to be in the range of $2.23 to $2.28 for the quarter compared to the analyst estimate of $2.24.
For 2023, the company expects net revenue to be in the range of $9.51B to $9.57B, representing growth of 17% to 18% and versus the estimate of $9.51B. Diluted earnings per share are expected to be in the range of $12.02 to $12.17 versus the estimate of $11.94.
For the second quarter, EPS of $2.68 beat the average analyst estimate by $0.14. Revenue of $2.21B beat by $40M.
Total comparable sales increased 11%, meeting the estimate and besting Athletaâs (GPS) recently-reported same-store sales down 7%. Earlier this year, adidas AG (OTCQX:ADDYY) reported apparel sales down 3% for the second quarter. Apparel sales were down 5% for Under Armour (UAA), while total comparable sales at Victoriaâs Secret (VSCO) decreased 11%.
"Our Q2 results highlight the ongoing strength of the business amid a dynamic operating environment,â Chief Executive Officer Calvin McDonald said in a statement. âOur continued ability to gain market share and bring new customers into the brand illustrates the significant runway ahead for lululemon."
Shares are up 18% year-to-date.

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