LULU's second-quarter net earnings of $208 million increased 140% year-over-year

Pan Yujing, trainee reporter, Dorint China Securities News· China Securities Network

China Securities Network News (reporter Pan Yujing trainee reporter Durint) sports brand Lululemon (NASDAQ: LULU) recently announced the second quarter of fiscal 2021. Net revenue for the second quarter was $1,451 million (approximately RMB9,340 million), up 61% year-over-year, net income was US$208 million (approximately RMB1.34 billion), an increase of 140% year-over-year, and diluted earnings per share were $1.59 (approximately RMB10.24), an increase of 141% year-over-year.

From a regional perspective, Lululemon's growth rate in North America in the second quarter surpassed that of the international market, with growth rates of 63% and 49% respectively. Revenue was $996 million in the U.S. compared to $596 million in the year-ago quarter, $217 million in Canada compared to $148 million in the year-ago quarter, and $238 million outside North America compared to $159 million in the year-ago quarter. During this period, the company also opened a total of 6 new stores in the Chinese mainland market, opening an offline travel retail layout.

From the perspective of different business lines, the two-year average annual compound growth rate of women's clothing business revenue is 26%; the two-year average compound growth rate of men's clothing business revenue is 31%, which has maintained a higher growth rate than women's clothing for two consecutive years. As a new growth point in recent years, the company's revenue target for this year's men's wear business is to double that of last year.

In its outlook for the third quarter of fiscal 2021, Lululemon expects net revenue to be $1.4 billion to $1.43 billion and net revenue for the full fiscal year 2021 to be $6.19 billion to $6.26 billion. This means that Lululemon expects to meet its 2023 revenue target two years ahead of schedule by the end of this year.