Lululemon reported net income of $0.16 per share for the second quarter of FY08, up from $0.07 per share in Q2FY07, beating analyst expectations for $0.13 per share. The retailer's sales increased 59% in the first two quarters of FY08 as same store sales grew 14% during the same time period.
Lululemon reported a 75% increase in revenue to $78.2 million for the first quarter of fiscal 2008. Net income increased from $3.5 million in Q1FY07 to $8.5 million in Q1FY08. However, Lululemon reduced its earnings outlook for the full fiscal year from net earnings of $0.70-$0.72 per share to $0.68-$0.71 due to increased costs related to incremental hirings and higher expenses related to other undisclosed strategic initiatives.
The CEO recently stated that perhaps it is time to have a female as a senior leader and since they just hired Christine Day from Starbucks perhaps we might see this change. The departure of Mr. Tattersfield the former COO is a sign of more seasoned retail mangement taking charge and a recent upgrade on the stock may be attracking new buyers after a large sell off.
Lululemon athletica Inc raised its third-quarter outlook for comparable store sales, referring to strong sales volumes and the strengthening of the Canadian dollar against the U.S. dollar. The company expects same store sales percentage growth to be in mid-30s over the last year, as compared to the previous outlook of growth in mid to high teens. It also expects to surpass its third quarter previous earnings outlook of 5 cents to 6 cents a share.
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