Sales surge at Lululemon as demand for workout gear continues

Lululemon Athletica Inc forecast annual revenue and profit above estimates on Wednesday.
“Our second quarter results demonstrate the continued momentum across the business." : Lululemon CEO.
// Net revenue rose by 61% to £1.05 billion in the second quarter, beating estimates
// The retailer expects revenues of £1.01 billion to £1.03 billion in the third quarter

Shares at Lululemon have jumped over 10 per cent after the retailer reported a second-quarter profit that surged from a year ago, driven by demand for its comfortable leggings and sports bras despite the easing of Covid-19 restrictions.

Both earnings and revenues for the three-month period trumped Wall Street estimates and as a result, the yoga apparel retailer has lifted its outlook for the full year.

Shares rose 13 per cent to £311.37 and investors traded more than £362 million worth of shares after the bell, according to Refinitiv data.

Revenues for the quarter jumped 61 per cent to £1.05 billion from £653.8 million last year.

Analysts had a consensus revenue estimate of £963.22 million for the quarter.

Commenting on the results, Lululemon chief executive Calvin McDonald said: “Our second quarter results demonstrate the continued momentum across the business, and how we are living into our Power of Three growth plan and Impact Agenda commitments.

“We launched exciting new products, experienced strength across channels and geographies, and announced new partnerships that will allow us to become a leader in product sustainability.”

Looking forward to the third quarter, the company expects revenues of £1.01 billion to £1.03 billion and adjusted earnings of £0.96 to £1.00 per share.

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