Lululemon Athletica Inc. (NASDAQ: LULU) reported second-quarter earnings Thursday that surpassed analysts’ expectations. The news comes as workout gear demand continued to rise despite increasing prices that have affected other retailers’ apparel sales. The company raised its outlook for the year and its shares rose 9% amid the news.
The U.S.-Canadian apparel retailer reported earnings of USD2.20 per share, compared to the expected USD1.87 a share. Revenue amounted to USD1.87 Billion, higher than analysts anticipated USD1.774 Billion. Ultimately, same-store sales were up 23%, beating StreetAccount’s estimate of 17.6%.
Calvin McDonald, Chief Executive Officer, stated: “The momentum in our business continued in the second quarter, fueled by strong guest response to our product innovations, community activations, and Omni experience. I would like to express my gratitude to our teams around the world for their continued dedication and enthusiasm for our brand, which enabled us to generate this elevated level of performance. As we look ahead, we’re excited about our ability to successfully deliver against our Power of Three ×2 growth plan and create ongoing value for all our stakeholders.”
Lululemon seems unfazed by inflationary pressures due to its higher-income customer base. Nevertheless, several other high-end retailers such as Macy’s and Nordstrom cut their outlook throughout the quarter amid fears of lower demand. In comparison, Lululemon has actually raised its guidance in two consecutive quarters.
“Despite the challenges around us in the macro-environment, guest traffic in our stores and on our e-commerce sites remains robust, which speaks to the strength of our multi-dimensional operating model,” Chief Financial Officer Meghan Frank said in a news release.