Lululemon stock soars on Q2 earnings beat
Yahoo Finance anchors discuss how Lululemon stock is moving following the company's earnings announcement.
Video Transcript
[AUDIO LOGO]
AKIKO FUJITA: Well, strong quarters providing a big lift to Lululemon. Shares are soaring in the session after the company easily beat on the top and bottom lines. The stock up nearly 10% right now. Same-store sales grew nearly 25% in the quarter, bucking the trend of some of the slowdowns we've seen from rival retailers.
CFO Megan Frank telling analysts that traffic in stores and online remained robust, despite challenges in the macroeconomic environment. The company is maintaining its long-term outlook, aiming to double net revenue to $12 and 1/2 billion from 2021 to 2026.
Brian, this is really a strong story both online and in stores. What I thought was kind of interesting-- we've been keeping a close watch on Lululemon's men's business. I know you-- Are you wearing them?
BRIAN CHEUNG: I am, yeah.
AKIKO FUJITA: Those are Lulu pants?
BRIAN CHEUNG: These are, yeah. This is the first pair of Lulu things that I've owned, yeah.
AKIKO FUJITA: 27% growth.
BRIAN CHEUNG: Yeah. Well, and what's really interesting, too, is that-- I mean, a lot of high end retailers are-- I mean, it's kind of mixed in terms of whether or not they can increase or lower their guidance. Lululemon, in this case, raising their guidance for the future.
I mean, you know, in this inflationary environment, we're seeing a pullback-- and data does confirm this-- among the higher earning wage earners because they're saying, well, I have to make tradeoffs into other-- but maybe I should just save some of the money that I have right now. Apparently, though, not for people spending on Lululemon.
And for what it's worth, it's not because of promotions. They have 85% increase in inventories. But you know, management was saying on the call, they don't have to really substantially discount those items to get them out the door. People will pay full price for them. I did it. Not for these, though.
AKIKO FUJITA: We want a review of these pants.
BRIAN CHEUNG: These are-- you know, these are really comfortable, actually.
AKIKO FUJITA: You just want to show the shoes.
BRIAN CHEUNG: The thing is that-- I do want to show off the shoes. They're pretty stretchy also. But I got to say, they're comfortable. You can wear them in the office. You know, I feel like I can run a marathon in these pants, honestly, right now.
AKIKO FUJITA: Yeah.
BRIAN CHEUNG: It's good stuff. It's good. Although, I feel like I'm noticing Lululemon quality has gone down a little bit lately.
AKIKO FUJITA: I was gonna say, this segment was not paid for by Lulu.
BRIAN CHEUNG: Not paid for.
AKIKO FUJITA: But, you know, it's constructive criticism, right?
BRIAN CHEUNG: Not paid for at all.
