Key Metrics
Direct-to-customer sales accounted for 24.6% of total revenues. Having opened five new stores, the company ended the quarter with a total of 460 stores.
Net profit was $125 million or $0.96 per share, compared to $95.8 million or $0.71 per share in the second quarter of 2018. Analysts had forecast slower growth.
Also read: Guess? Stock jumps after Q2 results beat estimates
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Calvin McDonald, CEO of Lululemon Athletica, said, “We continue to make progress in delivering against our Power of Three growth pillars – product innovation, omni-guest experience, and market expansion. Our success demonstrates the significant runway in front of lululemon and I’m grateful to our teams for bringing our vision to life.”
Guidance
Encouraged by the impressive results, the management is currently looking for low double digits growth in comparable sales for the third quarter, when revenues are expected to be in the range of $880 million to $890 million. The estimate for earnings per share is $0.90 to $0.92.
Related: Lululemon Athletica Q1 2019 Earnings Call Transcript
For the whole of 2019, Lululemon expects revenue to be in the range of $3.80 billion to $3.84 billion, based on comparable sales growth in low double digits. It is looking for full-year earnings of $4.63-$4.70 per share.
The management is planning to expand operations beyond the US and Canada to other geographical regions even as the company faces competition from Nike (NKE) and Gap (GAP) in the athleisure segment.
Stock Performance
After losing momentum in the final weeks of 2018, Lululemon shares gained significantly this year and reached an all-time high last month. In the past twelve months, the stock moved up 22%. It closed Thursday regular trading higher and continued to gain during the extended session.