Lululemon Athletica Shares Jump After Strong Earnings for Second Quarter of Fiscal 2021
Sep 9, 2021 By MarketDepth
Lululemon Athletica Inc. (NASDAQ: LULU) more than 10% after the popular sports appeal company announced financial results for the second quarter of fiscal 2021. For the second quarter of 2021, compared to the second quarter of 2020, net revenue increased 61% to $1.5 billion. On a constant dollar basis, net revenue increased 56%. In addition, Company-operated stores net revenue increased 142% to $695.1 million. In North America, net revenue increased 63%, and increased 49% internationally.
Continued Momentum
Calvin McDonald, Chief Executive Officer, stated: “Our second quarter results demonstrate the continued momentum across the business, and how we are living into our Power of Three growth plan and Impact Agenda commitments. We launched exciting new products, experienced strength across channels and geographies, and announced new partnerships that will allow us to become a leader in product sustainability.” McDonald continued: “I’m inspired every day by our teams around the world for their continued enthusiasm, agility, and commitment to the brand.”
$1.2 Billion in Cash
The Company ended the second quarter of 2021 with $1.2 billion in cash and cash equivalents and the capacity under its committed revolving credit facilities was $397.2 million. Inventories at the end of the second quarter of 2021 increased 17% to $789.8 million compared to $672.8 million at the end of the second quarter of 2020.
“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.”
Meghan Frank, Chief Financial Officer
Meghan Frank, Chief Financial Officer, stated: “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. 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. I too would like to thank the teams across the globe for enabling our solid financial performance.”
Third Quarter Outlook
Lululemon has provided an outlook for the third quarter of 2021, expecting net revenue to be in the range of $1.400 billion to $1.430 billion. Diluted earnings per share are expected to be in the range of $1.28 to $1.33 for the quarter and adjusted diluted earnings per share are expected to be in the range of $1.33 to $1.38.
