Lululemon Revenues Increase; Net Income Drops

Lululemon Athletica (NASDAQ: LULU  ) reported its second-quarter earnings today, saying net revenue increased 22% to $344.5 million, up from $282.6 million in the year-ago quarter. Net income for the second quarter 2013 was $56.5 million, down from $57.2 million in the same quarter last year. 

Diluted earnings per share remained flat from Q2 2012 to Q2 2013, maintaining at $0.39. In a press release, the company said its comparable-store sales for the quarter increased by 8%. Lululemon's inventory at the end of the second quarter 2013 totaled $163 million compared to $125.4 million at the end of the second quarter of fiscal 2012. 

The results beat Wall Street predictions, but the Canadian yoga clothing maker issued a weak outlook for the current quarter and cut its predictions for the full year.

Lululemon expects third-quarter 2013 net revenue to be in the range of $370 million to $375 million, with EPS estimates of $0.39 to $0.41.  Analysts expect earnings of $0.45 per share on $390.1 million in revenue.

For the full year, the company said it now expects earnings of $1.94 to $1.97 per share on $1.63 billion to $1.64 billion in revenue. That's down from its June predictions of earnings between $1.96 and $2.01 per share and revenue of $1.65 billion to $1.66 billion.

The company's CEO, Christine Day, said in a statement that, "2013 continues to be the most important and most productive year in lululemon's history. We have not only worked our way back from the black luon setback, but have also added very talented people in important functions and have taken major steps forward on a number of key fronts including the expansion of our international and men's businesses and many logistical initiatives."

The earnings report comes after the company announced last quarter that Day will step down once a successor has been named. Lululemon has also struggled amid a recall of its Luon line of yoga pants over complaints that they were too sheer.

-- Material from The Associated Press was used in this report.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2635328, ~/Articles/ArticleHandler.aspx, 10/1/2016 2:55:40 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 17 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:00 PM
LULU $60.98 Down -0.01 -0.02%
Lululemon Athletic… CAPS Rating: ***