Shares of Lululemon Athletica Inc. (NASDAQ: LULU) soared on Friday after the athletic retailer reported second quarter earnings that beat analysts’ estimates, boosted by strong growth in online sales.
The Company said net revenue rose 25% to USD 723.5 Million in the quarter ended July 29, 2018, beating analysts’ estimates of USD 668 Million.
Diluted earnings per share was 71 cents per share in the second quarter, compared to 36 cents per share a year earlier. Analysts polled by Thomson Reuters had projected earnings per share of 49 cents.
Comparable sales increased 20% during the quarter.
The strong performance is driven by robust online sales. The company said direct to consumer net revenue jumped 66% in the second quarter.
Stuart Haselden, Chief Operating Officer, commented: "We’re pleased to see the great results of Q2 across all parts of our business now extending into the current quarter. This ongoing success positions us to achieve our 2020 goals and beyond. Above all, we want to thank our educators and teams around the world who make this possible."
Lululemon shares jumped over 13% to $115.7 per share during Friday’s trading session. The stock nearly doubled its value this year.
Calvin McDonald, Chief Executive Officer, also noted: "I’m excited to work with the leadership team to build upon this considerable success. We have an incredible growth trajectory in front of us, given the strength of the brand and our people."