The 10-second takeaway
For the quarter ended July 29 (Q2), Lululemon Athletica met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins contracted, net margins grew.
Lululemon Athletica logged revenue of $282.6 million. The 21 analysts polled by S&P Capital IQ predicted revenue of $286.2 million on the same basis. GAAP reported sales were 33% higher than the prior-year quarter's $212.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.34. The 20 earnings estimates compiled by S&P Capital IQ averaged $0.31 per share. GAAP EPS of $0.39 for Q2 were 50% higher than the prior-year quarter's $0.26 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 55.1%, 240 basis points worse than the prior-year quarter. Operating margin was 24.8%, 320 basis points worse than the prior-year quarter. Net margin was 20.2%, 210 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $304.6 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $1.36 billion. The average EPS estimate is $1.76.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,002 members out of 1,330 rating the stock outperform, and 328 members rating it underperform. Among 359 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 266 give Lululemon Athletica a green thumbs-up, and 93 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lululemon Athletica is outperform, with an average price target of $74.80.
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