Lululemon Athletica (NASDAQ:LULU) stretched 2% higher in premarket, to $388.87, after it posted strong second-quarter numbers well ahead of expectations, and, triggered a guidance upgrade for the full year.
Sales rose 18% to $2.2 billion, beating both in-house guidance and Wall Street forecasts.
At the same time, earnings per share of $2.68 also handily beat analyst expectations of $2.53.
While Lululemon’s North American sales were up 11% year-over-year, international sales surged 52% from last year's levels.
The company said it expects net revenue for fiscal 2023 to be in the range of $9.51 billion to $9.57 billion, representing growth of 17% to 18%. Diluted earnings per share are expected to be in the range of $12.02 to $12.17 for the year.
Bank of America has touted Lululemon as the “highest quality growth story” in their coverage, with a ‘Buy’ rating on the stock and a price target of $450.