By Dhirendra Tripathi
Investing.com – Lululemon stock (NASDAQ:LULU) surged 14% in Thursday’s premarket trade as the company raised its annual outlook for the second time after comfortably beating estimates in the second quarter.
Revenue and profitability jumped as the company continued to enjoy elevated demand for sports and casual wear, not just for exercising and outdoor activities but also during office working hours at home.
There was little sign of business slowing down as the economy reopens. Lululemon raised its full-year revenue forecast by 6% to around $6.22 billion, up 40% on-year. Third-quarter revenue is seen at around a central estimate of $1.41 billion, down only fractionally from $1.5 billion in the three months through July.
Makers of sports and leisure wear such as Lululemon, Nike (NYSE:NKE) and Under Armour (NYSE:UAA) have been among the biggest winners of the pandemic, as lockdowns have allowed people to shun formal wear, while the release from commuting has given them more time for exercise.
There were however some signs of changing shopping patterns as life returned to normal in the U.S. this spring. . Direct-to-consumer sales weakened, while the company opened 11 own-stores during the second quarter to close July with 534 outlets.
Adjusted profit per share more than doubled to $1.65 from 74 cents. The company repurchased stock worth $171.1 million during the quarter.