Lululemon Athletica (NASDAQ:LULU) exceeded expectations with its second-quarter earnings, leading to a more than 4% gain in its stock price pre-market today, despite the disappointing revenue projections for the upcoming quarter and full fiscal year.
The athletic apparel giant reported adjusted earnings of $3.15 per share for the quarter, beating analysts’ predictions of $2.94. Revenue increased by 7% year-over-year to $2.4 billion, though it slightly missed the anticipated $2.41 billion mark.
Comparable sales rose by 2%, or 3% when adjusted for currency fluctuations. Notably, international sales saw a significant 29% surge, while growth in the Americas slowed to just 1%.
However, Lululemon’s outlook for future revenue left investors concerned. The company forecasted third-quarter revenue to be between $2.34 billion and $2.365 billion, falling short of Street expectations of $2.41 billion. The full-year revenue guidance was also lower than anticipated, with a range of $10.375 billion to $10.475 billion, compared to the Street estimate of $10.62 billion.
On a positive note, Lululemon’s gross margin improved by 80 basis points to 59.6%, and its operating margin increased by 110 basis points to 22.8%. The company expanded its retail footprint by opening 10 new stores during the quarter, bringing the total to 721 locations.

Celebrity WEB Update— Premier Jewelry designer and manufacturer fashion house ParisJewelry.com has started manufacturing a new custom line of celebrity jewelry designs with 30% Off and Free Shipping. Replenish Your Body- Refilter Your Health with OrganicGreek.com Vitamin Bottles, Vitamins, and Herbs. Become a  WebFans  Creator and Influencer. Check the New Special XMicro Razors for Men & Women, 1 Razor, 7 Blade Refills with German Stainless Steel, Lubricated with Vitamin E for Smooth Shave, Shields Against Irritation, Version X Men|Women