Lululemon Athletica Inc. raised its full-year revenue and profit projections after once again beating sales forecasts in the second quarter. It’s a sign that Chief Executive Officer Calvin McDonald clearly has the wind at his back as he takes over.
- The new forecasts replace estimates that analysts had described as conservative. They also bring the yogawear maker closer to its goal of $4 billion in revenue for 2020.
- The digital business is thriving. With a 47 percent percent jump in e-commerce sales in constant currency, the Vancouver-based company is cashing in on its revamped website and direct-marketing efforts. It’s planned a new distribution center in the Toronto region to better address orders from the east coast.
- Shares rose as much as 8.2 percent to $148.27 in late trading. They have gained 74 percent this year through Thursday’s close, reflecting investors’ confidence in the company’s plan to accelerate e-commerce revenue growth, attract more male shoppers and expand overseas.
- McDonald, a Canadian who most recently served as a top executive at makeup chain Sephora, joined the company earlier this month.
- Company says experiments with new store formats also helped boost brick-and-mortar sales.
|Second-quarter results and outlook:|
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