Lululemon Athletica Inc (NASDAQ:LULU) shares traded lower after Thursday’s closing bell as the company downwardly revised its full-year sales and profit outlook, taking the shine off better-than-expected earnings for the second quarter.
The athletic apparel company now expects full-year revenue in the range of $10.375 billion to $10.475 billion, representing growth of 8% to 9%, from its earlier forecast of $10.7 billion to $10.8 billion, or growth of 9% to 10%.
It also slashed its earnings per share (EPS) guidance to between $13.95 and $14.15 from its prior guidance range of $14.27 to $14.47.
Street analysts expect revenue of $10.56 billion and EPS of $14.01.
The company’s third quarter guidance also fell short of the consensus of $2.4 billion, with Lululemon expecting revenue in the range of $2.340 billion to $2.365 billion.
EPS is expected to be in the range of $2.68 to $2.73, with analysts expecting earnings at the top end of this range at $2.72.
Lululemon’s disappointing guidance overshadowed better-than-expected profits for the second quarter, with earnings per share (EPS) of $3.15 topping estimates of $2.92.
Revenue increased 7% year-over-year to $2.4 billion, in line with Street estimates.
"In the second quarter, lululemon delivered revenue and earnings growth, with ongoing strength across our international business,” Lululemon CEO Calvin McDonald said.
Lululemon CFO Meghan Frank added: "Earnings per share exceeded our expectations in the second quarter, driven by better-than-expected gross margin expansion and disciplined execution.”
Shares of Lululemon traded down 0.8% at $257 post-earnings.