Why it’s trading higher today

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  • Lululemon Athletica Inc (NASDAQ: LULU) stock price is trading above 10% before market this morning. That’s why it happened.

Lululemon Athletica Inc (NASDAQ: LULU) stock price is trading above 10% before market this morning. Investors are reacting positively to the company’s financial results for the second quarter of fiscal 2021.

For the second quarter of 2021, compared to the second quarter of 2020:

– Net revenues increased 61% to $ 1.5 billion. In constant dollars, net sales increased 56%.

– Corporate store net sales increased 142% to $ 695.1 million.

– Net direct income to consumers increased 8% to $ 597.4 million. In constant dollars, direct-to-consumer net sales increased 4%.

– Net sales increased 63% in North America and 49% internationally.

– Direct-to-consumer net sales represented 41.2% of total net sales compared to 61.4% in the second quarter of 2020.

– Gross margin increased 72% to $ 842.7 million and gross margin increased 390 basis points to 58.1%.

– Operating profit increased 134% to $ 291.0 million. Adjusted operating income increased 120% to $ 299.2 million.

– The operating margin increased by 630 basis points to 20.1%. Adjusted operating margin increased 560 basis points to 20.6%.

– Income tax expense increased 123% to $ 83.1 million. The effective tax rate for the second quarter of 2021 was 28.5% versus 30% for the second quarter of 2020. The adjusted effective tax rate was 27.9% for the second quarter of 2021 versus 28.9% for the second quarter of 2020.

– Diluted earnings per share amounted to $ 1.59 compared to $ 0.66 in the second quarter of 2020. Adjusted diluted earnings per share amounted to $ 1.65 compared to $ 0.74 in the second quarter. quarter of 2020.

– Lululemon Athletica repurchased 0.5 million shares of its own common stock at an average price of $ 338.41 per share for a total cost of $ 171.1 million.

– Lululemon Athletica opened 11 new corporate stores during the second quarter, ending with 534 stores.

For the second quarter of 2021, compared to the second quarter of 2019:

– Net revenues increased by $ 567.3 million, or 64%, representing a compound annual growth rate of 28% over two years.

– Gross margin increased by 310 basis points.

– The operating margin increased by 110 basis points. Adjusted operating margin increased by 160 basis points.

– Diluted earnings per share was $ 1.59, compared to $ 0.96 in the second quarter of 2019. Adjusted diluted earnings per share was $ 1.65 in the second quarter of 2021.

Outlook 2021

For the third quarter of 2021, the company expects net sales to be between $ 1.4 billion and $ 1.43 billion. And diluted earnings per share is expected to be between $ 1.28 and $ 1.33 for the quarter and adjusted diluted earnings per share is expected to be between $ 1.33 and $ 1.38.

For 2021, the company expects net sales to be between $ 6.190 billion and $ 6.260 billion. And diluted earnings per share should be in the range of $ 7.16 to $ 7.26 for the year and adjusted diluted earnings per share should be in the range of $ 7.38 to $ 7.48.

KEY QUOTES:

“Our second quarter results demonstrate the continued momentum across the business and how well we are delivering on our Power of Three growth plan and Impact program commitments. We have launched exciting new products, demonstrated strength in all channels and geographies, and announced new partnerships that will allow us to become a leader in product sustainability. McDonald continued, “I am inspired every day by our teams around the world for their enthusiasm, agility and continued commitment to the brand. “

– Calvin McDonald, CEO

“Our second quarter performance was driven by a strong response to our product offering, improved productivity in our stores and sustained strength in e-commerce. As we continue to navigate the COVID-19 environment, including supply chain headwinds, I am excited about our momentum heading into the second half of the year and excited to be able to increase our forecast. I too would like to thank teams around the world for enabling our strong financial performance. “

– Meghan Frank, Chief Financial Officer

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.


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