Lululemon Revenues Increase; Net Income Drops
Lululemon Athleticareported its second-quarter earnings today, saying net revenue increased 22% to $344.5 million, up from $282.6 million in the year-ago quarter. Net income for the second quarter 2013 was $56.5 million, down from $57.2 million in the same quarter last year.
Diluted earnings per share remained flat from Q2 2012 to Q2 2013, maintaining at $0.39. In a press release, the company said its comparable-store sales for the quarter increased by 8%. Lululemon's inventory at the end of the second quarter 2013 totaled $163 million compared to $125.4 million at the end of the second quarter of fiscal 2012.
The results beat Wall Street predictions, but the Canadian yoga clothing maker issued a weak outlook for the current quarter and cut its predictions for the full year.
Lululemon expects third-quarter 2013 net revenue to be in the range of $370 million to $375 million, with EPS estimates of $0.39 to $0.41. Analysts expect earnings of $0.45 per share on $390.1 million in revenue.
For the full year, the company said it now expects earnings of $1.94 to $1.97 per share on $1.63 billion to $1.64 billion in revenue. That's down from its June predictions of earnings between $1.96 and $2.01 per share and revenue of $1.65 billion to $1.66 billion.
The company's CEO, Christine Day, said in a statement that, "2013 continues to be the most important and most productive year in lululemon's history. We have not only worked our way back from the black luon setback, but have also added very talented people in important functions and have taken major steps forward on a number of key fronts including the expansion of our international and men's businesses and many logistical initiatives."
The earnings report comes after the company announced last quarter that Day will step down once a successor has been named. Lululemon has also struggled amid a recall of its Luon line of yoga pants over complaints that they were too sheer.
-- Material from The Associated Press was used in this report.
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