Lululemon Athletica Inc. hiked its Q3 guidance due to “stronger-than-anticipated” sales. The company now expects EPS in the range of 17 cents to 19 cents compared to its previous guidance in the range of 11 cents to 13 cents.
Revenues are now projected in the range of $110 million to $112 million versus previous guidance in the range of $95 million to $100 million. Comps are expected to reflect a high-single digit increase on a constant-dollar basis, up from previous guidance calling for relatively flat comps.
In the year-ago quarter, lululemon earned 13 cents a share on sales of $87 million.
Christine Day, lululemon’s CEO stated: “Our sourcing and production strategies designed to chase inventory and keep pace with renewed sales momentum proved to be very effective during this fall season. By staying in stock in our core items, as well as our new running line and seasonal outerwear offerings, we have been able to satisfy strong guest demand and exceed our original revenue expectations for the quarter. We will continue to chase inventory and will also increase our reinvestment in the business to ensure that we are delivering the product and in-store experience that our guests have come to expect from lululemon.”
