How Lululemon Sprinted Ahead of Analyst Expectations in Q2
Activewear and clothing company lululemon athletica (NASDAQ: LULU) posted its second-quarter results today, exceeding analyst consensus expectations in both revenue and earnings per share. Analysts expected adjusted EPS of $0.56, with actual earnings of $0.74 delivering a 32% positive surprise. The company's revenue was also a pleasant surprise at a rise of approximately 6.6%, registering at $902.94 million rather than analyst expectations of $847.38 million.
Not only did Lululemon outstrip predictions, but its results also actually included year-over-year growth in net revenue despite the continuing negative fallout of the COVID-19 pandemic into Q2 2020. Net revenue rose roughly 3%. However, its net income of $86.8 million plunged 30.5% year over year. Adjusted EPS cannot be directly compared to 2019's figure, which was calculated on a diluted basis rather than adjusted diluted; diluted EPS as reported under generally accepted accounting principles (GAAP) shrank by 31.2%.
Source Fool.com
