2Q17 Earnings: Lululemon Beats Wall Street Expectations Again



Snapshot of the series

Athletic apparel manufacturer Lululemon Athletic“The strategic pillars, including digital, international, men’s, and North America drove the improvement in our business,” said Laurent Potdevin, CEO of Lululemon Athletica.a (LULU) reported its second-quarter 2017 earnings results on August 31. The results relate to the three-month period ended July 30.

As in the previous quarter, the company reported better-than-expected top and bottom lines. Total sales rose 13% YoY (year-over-year) to $581 million—$13.6 million more than Wall Street expectations. Earnings per share improved 2.6% YoY to 39 cents—4 cents more than the average consensus estimates.

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Lululemon’s stock rallied after the results and closed 7.2% higher on the next trading day. The company is now sitting at a YTD (year-to-date) loss of ~5%. Competitors Under Armour (UAA) at -44% and Columbia Sportswear (COLM) at -0.2% are also in the red while sportswear giant Nike (NKE) has managed YTD gains of ~5%.

About Lululemon Athletica

Lululemon Athletica designs and sells lifestyle athletic apparel are inspired by yoga and other fitness activities. It currently operates around 420 stores in the United States, Canada, New Zealand, Australia, and the United Kingdom.

With a market capitalization of $8.35 billion (as of September 1), Lululemon has a weighting of 1.5% in the PowerShares Russell Midcap Pure Growth Portfolio (PXMG).

This series

This series is an overview of Lululemon’s second-quarter results. We’ll discuss the company’s 2Q17 financial performance, stock market performance, valuations, and recent analyst action.


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