.August 30, 2024 10:21 AM

Lululemon Athletica (NASDAQ:LULU) beat second-quarter earnings expectations, with adjusted earnings of $3.15 per share, surpassing analysts’ predictions of $2.94. Revenue rose by 7% to $2.4 billion, slightly missing the expected $2.41 billion mark. Comparable sales increased by 2%, or 3% when adjusted for currency fluctuations, with international sales up by 29% and Americas growth slowing to 1%.

Despite strong earnings, Lululemon’s revenue projections for the upcoming quarter and full fiscal year fell short of expectations. The company forecasted third-quarter revenue between $2.34 billion and $2.365 billion, below the Street estimate of $2.41 billion. Full-year revenue guidance was also lower than anticipated, with a range of $10.375 billion to $10.475 billion, compared to the Street estimate of $10.62 billion.

On a positive note, Lululemon’s gross margin improved to 59.6%, and its operating margin increased to 22.8%. The company opened 10 new stores during the quarter, bringing the total to 721 locations.