Lululemon's stock price shot up on Thursday morning, following news that it had beaten out expectations for the second quarter of 2014, which ended August 3. With what company executives described as "strong fall transition product," the yoga retailer brought in $390.7 million in sales, a 13 percent rise as compared to the same period last year.
That said, comparable sales remained flat for the second quarter and were up just 1 percent for the first half of the year. There are currently 206 stores in Lululemon's comp base, the majority of which are in the U.S., and sales from that segment dropped 5 percent for the quarter. Direct to consumer revenue, however, made up for that with a 30 percent rise in sales.
The quarter wrapped up just before founder Chip Wilson announced that he had sold off half of his shares to the private equity firm Advent International, a move that calmed speculation that Wilson was angling for a company takeover and that placed two Advent members on Lululemon's board.
The company currently expects to bring in $420 to $425 million in the third quarter. We're looking forward to seeing if they can deliver on that outlook.