Lululemon 2Q profit jumps nearly 50 pct
NEW YORK (AP) — Lululemon Athletica Inc. said Friday that its net income jumped by nearly 50 percent in the second quarter, boosted by higher sales of its upscale yoga wear and a favorable tax adjustment.
The company raised its forecasts for the year and its shares climbed more than 5 percent in morning trading.
For the quarter ended July 29, the Canadian company earned $57.2 million, or 39 cents per share, up from $38.4 million, or 26 cents per share, in the same quarter last year.
The recent quarter's results were boosted by a $7.2 million tax adjustment. Factoring a normalized tax rate, the company posted adjusted earnings of 34 cents per share.
Using the company's previously estimated tax rate, the company would have earned 31 cents per share, which matched the average estimate of analysts polled by FactSet.
Revenue rose 33 percent to $282.6 million from $212.3 million, also matching analysts' expectations.
The company said its revenue at stores open at least a year rose 15 percent. The metric is a key measure of a retailer's health, because it excludes revenue from stores that opened or closed recently.
Direct to consumer revenue jumped 91 percent to $35.4 million, or 13 percent of total company revenue. It accounted for about 8.8 percent of revenue in the same quarter last year.
The company said it now expects to post 2012 earnings of $1.76 to $1.81 per share on $1.35 billion to $1.36 billion. That's up from its June predictions for earnings of $1.55 to $1.60 per share on $1.32 billion to $1.34 billion in revenue.
Analysts expect fiscal 2012 earnings of $1.63 per share on $1.35 billion in revenue.
U.S. shares of Vancouver-based Lululemon rose $5.03, or 7.3 percent, to $73.63 in morning trading Friday. They are still down 9 percent from their 52-week high of $81.09 set in early May. They traded as low as $41.70 in early December.