Lululemon raises its annual forecasts

Lululemon Athletica announced on Thursday revenues and profits better than expected in the second quarter, driven by the strength of electronic business and men's fashion, encouraging the Canadian sportswear manufacturer to raise its annual forecasts.

Lululemon has focused on increasing its online presence, expanding internationally and increasing the number of stores. The company's profits from direct sales to the consumer, which includes its electronic and mobile sales, increased 30% in the second quarter.

The company, famous for its trend sportswear for women, has also targeted a larger proportion of the men's clothing segment, achieving a comparable sales increase of 27% in the quarter ended August 4.

The growth in the male sector exceeded the growth of total comparable sales of the company set at 15%, exceeding the forecasts of analysts who estimated an increase of 12.2%.

The yoga pants specialist said he now expects to earn a net annual income of between 3800 and 3840 million dollars, compared to previous forecasts that placed them between 3720 and 3770 million dollars.

The company increased its annual profit forecasts to between $ 4.63 and $ 4.70 per share, compared to the $ 4.51-4.58 set previously.

The company's shares rose by around 3% in extended trade.
Lululemon stated that he had seen more momentum in Europe and Asia Pacific, especially in China.

The company, however, says it expects a negative impact of between 4 and 5 cents on the gross margin for the new tariffs between the United States and China and the increase in air costs.

In an intervention following the announcement of benefits, CFO Patrick Guido said that Lululemon's exposure to China is relatively small, with approximately 6% of finished products affected by U.S. tariffs.

"In the future, we don't expect it to have a big impact on the business," he said.
The company is still optimistic for the fall season and the following ones.

Lululemon's revenues increased 22% to $ 883.4 million in the quarter ended August 4, exceeding the average forecast of analysts set at $ 845.7 million.

Excluding extraordinary, Lululemon earned 96 cents per share, exceeding the analyst's forecast of 89 cents.

The company's titles have gained 54.5% this year, surpassing the 18.8% increase in the S&P 500 index.