LULULEMON: flat sales in Q2 led to reduced earnings
YOGA wear and related bodywear chain Lululemon reported flat comparable sales in its second quarter although net revenue rose by 13 per cent to USD 390.7. Net earnings for the quarter sagged to USD 48.7m from USD 56.5m a year earlier. Nevertheless, the company ended the quarter with USD 725.1m in cash and cash equivalents, against USD 610.3m a year earlier. CEO Laurent Potdevin commented: “While there is still much to be done, we are making meaningful progress on building a scalable foundation for our next phase of global growth.”
For several years, analysts have been predicting an early end to the chain’s rapid expansion and generous margins. But the less than perfect performance of the second quarter is likely to prove just a blip, as was the case with previous disappointing quarters.