Lululemon Athletica Inc (NASDAQ:LULU) posted financial results for the second quarter after the closing bell on Thursday. Here’s what you need to know from the print.
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Lululemon Q2 Earnings Highlights
Lululemon reported second-quarter revenue of $2.42 billion, missing the consensus estimate of $2.46 billion, according to Benzinga Pro. The athletic and leisure apparel company reported second-quarter earnings of $2.92 per share, which may not compare to estimates.
Total revenue was down 4% on a year-over-year basis as Americas net revenue decreased 8% and international revenue climbed 4%. Total comparable sales fell 9% year-over-year.
Inventories were down 1% year-over-year to $1.7 billion. Lululemon’s total store count was 825 at quarter’s end after opening nine new company-operated stores during the quarter.
“Our teams remain focused on accelerating growth by strengthening our product offerings, increasing our marketing investments, and maintaining disciplined expense management,” said Meghan Frank, interim co-CEO and CFO of Lululemon.
Lululemon exited the quarter with approximately $1.4 billion in cash and cash equivalents.
Lululemon expects third-quarter revenue of $2.29 billion to $2.32 billion versus estimates of $2.53 billion. The company anticipates third-quarter earnings of 93 cents to 98 cents per share, versus estimates of $2.43 per share.
Lululemon lowered its full-year revenue outlook from a range of $11 billion to $11.15 billion to a new range of $10.35 billion to $10.50 billion, versus estimates of $11.04 billion. The company also lowered its full-year earnings guidance from a range of $10.95 to $11.15 per share to a new range of $9.48 to $9.73 per share, versus estimates of $10.96 per share.
“While we continue to navigate some challenging dynamics, we are taking a prudent approach with our revised full-year outlook,” Frank said.
Lululemon management will discuss the quarter on an earnings call scheduled for 4:30 p.m. ET.
LULU Shares Dive After Earnings
LULU Price Action: Lululemon shares were down 16.40% in after-hours on Thursday, trading at $101.82 at the time of publication, according to Benzinga Pro.
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