Lululemon Athletica Inc. maintained its momentum in the second quarter.
The athleisure apparel company reported net income of $208.1 million, or $1.59 a share, in the quarter ended Aug. 30, compared with $86.8 million, or $0.66 a share, in the year-ago period. Adjusted earnings per share were $1.65, compared with $0.74 a share in the year-ago period. Analysts were looking for earnings of $1.19 a share.
Revenue jumped to $1.45 billion from $902.3 million in the year-ago quarter, topping the $1.33 billion analysts had expected. Direct to consumer net revenue increased 8% to $597.4 million and represented 41.2% of total net revenue. Company-operated stores net revenue increased 142% to $695.1 million.
Sales in North America rose 63% and were up 49% internationally. The company opened 11 stores during the second quarter, ending with 534 stores.
In August, Lululemon said that, effective, Sept. 27, it will raise the minimum base pay for the majority of its store and Guest Education Centre employees in North America. Existing employees and individuals who are hired from this point forward will receive a new minimum of $15 or $17 per hour depending on their role and the market.
“Our performance in Q2 was driven by a strong response to our product offering, improving productivity in our stores, and sustained strength in e-commerce,” stated Meghan Frank, CFO, Lululemon. “While we continue to navigate the COVID-19 environment, including supply chain headwinds, I’m excited with our momentum as we head into the second half of the year and pleased to be able to increase our guidance.”
The company raised its full-year outlook to earnings of $7.38 to $7.48 a share on revenue of $6.19 billion to $6.26 billion for the year, up from a previous forecast of $6.52 to $6.65 a share on revenue of $5.83 billion to $5.91 billion. Analysts had forecast $6.93 a share on revenue of $5.94 billion for the year.
Lululemon forecast earnings of $1.33 to $1.38 a share on revenue of $1.4 billion to $1.43 billion for the third quarter. Analysts had estimated earnings of $1.32 a share on revenue of $1.32 billion.