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What: Shares of Lululemon Athletica , a retailer of apparel and accessories for active individuals, surged as much as 18% today after releasing its second-quarter earnings results before the opening bell.
So what: For the quarter, Lululemon delivered a 13% increase in net revenue to $390.7 million as total comparable sales, which includes retail locations as well as direct-to-consumer (i.e., online) sales, were flat on a constant currency basis. Broken down, physical same-store sales dipped 5%, while comparable direct to consumer revenue rose 30% year-over-year. Net income for the quarter totaled $48.7 million, or an adjusted $0.33 per share, down from $56.5 million, or $0.39 per adjusted share in the year-ago period, while gross margin dipped 350 basis points to 50.5%. By comparison, Wall Street's consensus expectation had called for $376.8 million in revenue and just $0.29 in EPS.
Lululemon also adjusted its full-year sales and earnings guidance. The company is now forecasting revenue of between $1.78 billion and $1.8 billion based on total comparable sales in the low-single-digits, and anticipates adjusted EPS will be in the $1.72 to $1.77 range. Both figures are in-line with current Wall Street forecasts.
The article Why Lululemon Athletica Inc. Stock Surged originally appeared on Fool.com.
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