Shares of Vancouver-based athleisure manufacturer Lululemon (ticker: LULU) soared over 13% in after-hours trading on Wednesday after the company posted impressive second-quarter profits and boosted its outlook for its next quarter.
Revenue climbed 61% to $1.45 billion from $902.9 million in the same period a year prior, beating expectations of $1.34 billion. The company also reported that North American sales had skyrocketed 63% year-over-year and 49% across the globe.
Lulu’s net income for the second fiscal quarter ending August 30 was also up to $208.1 million, an increase from $86.8 million a year prior.
“Our performance in Q2 was driven by a strong response to our product offering, improving productivity in our stores, and sustained strength in e-commerce,” CFO Meghan Frank said in a statement.
Although the company’s yoga attire is predominantly popular for its womenswear, its customer base has recently seen an increase in traffic from its men’s department. Lulu reported an incline in 31% in men’s sales over the last two years, compared with 26% for women. It also says it aims to double its men’s business in 2021.
Looking ahead, the company, which has a market cap of nearly $50 billion, also looks to have a promising future ahead, expecting its third fiscal quarter revenue to bring in $1.4 billion to $1.43 billion.
Based on the forecast, Lulu is now set up to exceed its revenue target two years ahead of schedule, hitting its goal for 2023 by the end of 2021.
The company’s CEO Calvin McDonald gave an update on Mirror, the fitness product that Lulu bought in 2020 for $500 million that mimics fitness spaces at home via a technologically advanced mirror. McDonald said the company now has mini-Mirror stores in 150 Lulu stores so far and plans on having it available in 200 stores by the holiday season.
“We’re monitoring how macro factors currently impacting the cost of digital marketing are creating some pressure on customer acquisition costs at Mirror. We’re enthusiastic about the opportunities that exist for the business,” McDonald said regarding Mirror.
In addition to its Mirror acquisition and impressive earnings and outlook, Lululemon doesn’t show any signs of slowing down, with plans to launch its own brand of athletic shoes by early 2022.