Lululemon Athletica Inc. jumped in late trading on Wednesday after boosting its outlook for the year and reporting sales that outpaced expectations showing the luxury yoga wear company is capitalizing during the extended work from home period.
The company expects that revenue for fiscal 2022, ending in January, will be as much as $6.26 billion. Its previous guidance had an upper limit of $5.91 billion. Lululemon’s forecast for third-quarter sales and profit also beat Wall Street’s estimate. Chief Executive Officer Calvin McDonald now sees the company hitting its long-term revenue target by the end of this year -- two years ahead of schedule.
The company’s success appears broad-based, with Chief Financial Officer Meghan Frank citing “a strong response to our product offering, improving productivity in our stores, and sustained strength in e-commerce” in a statement. On a call with analysts, McDonald said stores’ productivity was now on par with 2019, before the pandemic. The company is hosting in-person classes and events, which help drive repeat visits and impulse purchases.
Lululemon shares rose as much as 13% in late trading. The stock has risen 9% so far in 2021 through Wednesday’s close.
For Lululemon’s e-commerce business, Net revenue represented 41% of total net revenue in the fiscal second quarter ended Aug. 1. That was down from 61% a year earlier when stores were still reopening from the initial shutdown.
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