Lululemon Athletica Inc. shares rallied in the extended session Wednesday after the athleisure-apparel maker blew past Wall Street estimates for the quarter and hiked its full-year forecast by a wide margin.
shares surged 11% after hours, following a 1.5% decline in the regular session to close at $380.85.
The company reported second-quarter net income of $208.1 million, or $1.59 a share, compared with $86.8 million, or 66 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $1.65 a share, compared with 74 cents a share in the year-ago period.
Revenue rose to $1.45 billion from $902.3 million in the year-ago quarter. Analysts surveyed by FactSet had forecast $1.19 a share on revenue of $1.33 billion.
“Our performance in Q2 was driven by a strong response to our product offering, improving productivity in our stores, and sustained strength in e-commerce,” said Meghan Frank, Lululemon’s chief financial officer, in a statement. “While we continue to navigate the COVID-19 environment, including supply chain headwinds, I’m excited with our momentum as we head into the second half of the year and pleased to be able to increase our guidance.”
The company raised its full-year outlook to earnings of $7.38 to $7.48 a share on revenue of $6.19 billion to $6.26 billion for the year, up from a previous forecast of $6.52 to $6.65 a share on revenue of $5.83 billion to $5.91 billion. Analysts had forecast $6.93 a share on revenue of $5.94 billion for the year.
Lululemon forecast earnings of $1.33 to $1.38 a share on revenue of $1.4 billion to $1.43 billion for the third quarter. Analysts had estimated earnings of $1.32 a share on revenue of $1.32 billion.