Gross Profits Up 25% as Revenues Surge Past Pre-Covid Levels
- Lululemon raises FY22 outlook with revenues expected between $7.86bn and $7.94bn
- Gross profits increased by 25% to $1.1bn for Q2 FY22
- Revenues jumped 29% to $1.9bn, with a 28% rise in North America and 35% growth internationally
- Income from operations increased 38% to $401.2m
- Overall Q2 sales increased by 23% and comparable store sales increased 16%
- Direct-to-consumer revenues grew 30%, representing 42% of total net revenue
- CEO Calvin McDonald: ‘strong guest response to product innovations, community activations, and omni experience’
- CFO Meghan Frank: ‘robust guest traffic in stores and e-commerce sites’
- Positive outlook for fall and holiday seasons
Lululemon has raised its FY22 outlook, with revenues expected to be in the range of $7.86bn (£6.8bn) to $7.94bn (£6.87bn), representing a three-year annual growth rate of 26%. The company reported a 25% increase in gross profits to $1.1bn (£951.8m) for Q2 FY22, with revenues jumping 29% to $1.9bn (£1.6bn), showing a 28% rise in North America and 35% growth internationally. Income from operations increased 38% to $401.2m (£347.15m). Compared to pre-Covid levels, revenues surged by $1bn (£865.3m) (112%), representing a three-year compound annual growth rate of 28%. Overall, Q2 sales increased by 23%, and comparable store sales increased 16%. Direct-to-consumer revenues grew 30%, accounting for 42% of total net revenue. CEO Calvin McDonald attributed the success to strong guest response to product innovations, community activations, and omni experience. CFO Meghan Frank highlighted robust guest traffic in stores and e-commerce sites, expressing confidence in a positive outlook for the fall and holiday seasons.
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about Lululemon’s financial performance, including specific revenue and growth rates, as well as quotes from company executives that support the positive outlook for future growth.
Noise Level: 2
Noise Justification: The article provides relevant information about Lululemon’s financial performance and growth, including specific revenue numbers and growth rates. It also includes quotes from key executives that add context to the company’s outlook. The content is focused on the topic and does not contain irrelevant or filler information.
Financial Relevance: Yes
Financial Markets Impacted: Lululemon’s stock price may be impacted by this news, as investors may view the strong financial performance positively.
Financial Rating Justification: The article discusses Lululemon’s financial performance and outlook, which is relevant to finance and could potentially affect the company’s stock price in financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in this article.
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