NEW YORK, United States — Lululemon Athletica 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 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.
Lululemon's 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.
By Sandrine Rastello; editor: Anne Riley Moffat, Jonathan Roeder, Mark Schoifet