Lululemon Athletica Q2 Profit Down, But Beats Estimates; Lifts FY14 EPS View

(RTTNews) - Canadian yoga apparel maker Lululemon Athletica Inc. (LULU) Thursday reported lower earnings for the second quarter, as a result of rise in SG&A expenses. However, revenues improved by 13 percent year-over-year. In addition, the company raised its annual earnings outlook.

The company's net income was down to $48.7 million or $0.33 per share from $56.5 million or $0.39 per share a year ago. On average, 34 analysts polled by Thomson Reuters expected the company to report profit per share of $0.29 for the quarter. Analysts' estimates typically exclude special items.

Selling, general and administrative expenses increased to $129.4 million from $107 million last year.

Quarterly revenues rose to $390.7 million from $344.5 million last year. Comparable store sales for the second quarter was down by 5 percent on a constant dollar basis, while direct to consumer revenue climbed 30 percent on constant currency. Analysts expected revenue of $376.80 million.

Going forward, for third quarter, the company expects earnings per share in the range of $0.36 - $0.38, on revenues of $420 million - $425 million. Analysts estimate earnings per share of $0.38 on revenues of $421.85 million.

For the fiscal 2014, the group now forecasts earnings per share in the range of $1.51 - $1.56 or normalized earnings per share of $1.72 - $1.77. This compares with prior guidance for earnings per share of $1.50 - $1.55 or normalized earnings per share of $1.71 - $1.76. Revenues are projected to be between $1.78 billion and $1.80 billion. Analysts estimate earnings per share of $1.74 on revenues of $1.78 billion.