Lululemon: "Finishing Two Years Early"
(Lululemon Q2 FY21 Earnings Review)
The reaction to Lululemon’s second-quarter earnings (announced September 8th) caused the company’s share price to soar ~14% the following morning, ending the day up ~12% at $420 per share.
Whilst price action is not something I look to for validation of a great quarter, the reaction certainly seemed just.
Revenues for the quarter came in ~$150M over guidance ($1.45B), having grown 61% YoY, with the stronger than anticipated sales causing management to hike FY revenue guidance from between $5.83B to $5.91B to $6.19B to $6.26B. Equally impressive were the sales from Lulu’s e-commerce segment which, after guiding for a slight decline YoY, came in at a modest 4% increase from the monstrous 157% increase witnessed during the same period last year.
This, in conjunction with the apparent haste with which Lulu is completing their FY23 roadmap goals, has investors feeling confident. Impressed with the success of their progress in the Power of Three plan CEO, Cavin McDon…