Lululemon Sales Increased Sharply In The Two Quarter By 17%, And Nike's Foot Stepped On ADI.

Strong growth crushed Nike and Adidas group, Lululemon Athletica Inc. (NASDAQ:LULU) Lulu Le Meng growth in the two quarter of the speed increase performance and expected action to stimulate the stock price on Friday before the rise of up to 6.6% to 200.8 U.S. dollars, so that the group to stabilize the movement of the iron and steel throne.

In the two quarter of August 4th, the fixed exchange rate of Lululemon Athletica Inc. Lulu Le Meng increased by 17% compared to that of the previous year, far exceeding the combined 12% of Consensus Metrix, and its growth rate exceeded 10% in ten consecutive quarters. It is even more difficult to see that the sales growth rate of the same entity has increased from 8% in the first quarter to 11%, and e-commerce has continued to grow by 31%.

The market and men's and women's wear products in the three regions bring about a comprehensive growth for the group. Incomes in North America, Europe and Asia Pacific rose by 21%, 35% and 33%, respectively. Calvin McDonald, chief executive officer, revealed that China's growth rate was as high as 68%, including e-commerce's comparable sales growth of more than 70%. The group maintains plans to set up 15 stores in China this year, and expects that the number of stores in China will be doubled to 30 by the end of this year.

Women's wear increased by 13% compared with sales, while men's clothing increased by 27%. The proportion of women's income has increased to about 22%. Calvin McDonald said the demand for women's bottoms, men's wear and downloads was strong. During the two quarter, the group launched its own brand personal care product, "performance is beyond expectations". He also revealed that new products will be introduced before the end of the year.

Lululemon Athletica Inc. Lulu Meng Meng achieved 883 million 400 thousand dollars in the two quarter, which was better than the market expectation of US $846 million, up 22.1% from 723 million 500 thousand US dollars in the same period last year, and net profit rose 30.5% to 125 million US dollars. EPS increased from 0.71 US dollars to 0.96 US dollars, which exceeded US $0.89 in the pre market period.

The group raised its annual revenue guidelines from 37.3-37.7 billion to 38.0-38.4 billion, and is expected to record EPS 4.63-4.70 dollars, which was expected to be US $4.51-4.58. FactSet's combined forecasts for annual revenue and EPS were $3 billion 810 million and $4.64 respectively. Bernstein analyst Jamie Merriman believes that the outlook for growth is still "conservative".

The chief financial officer, Patrick Guido, said the new tariff policy and the resulting additional air freight costs would still have a negative impact on the annual profit of 0.04-0.05 dollars. He disclosed that about 6% of the finished products were taxed in the United States and that the proportion had been substantially reduced.

Lululemon Athletica Inc. (NASDAQ:LULU) rose at a record high of 8.5% to 204.44 dollars on Friday. According to FactSet data, the 12 month target price of the stock has increased from US $196.35 in August 31st to US $209.04.

No Agency analyst Tang Xiaotang said the strong share price of Lululemon Athletica Inc. was self imposed by Wall Street. 5 years ago, the brand was once considered the most likely brand to disappear in the next ten years, because the product recall and the board's internal struggle made the company suffer. However, the analyst said that luck could not stop. This is the so-called "draught" and "pigs are flying up" in China's science and technology industry.

Sam Poser, a brokerage analyst at Susquehanna, believes that Lululemon Athletica Inc.'s "excellent" two quarter results further prove that the group is "second to none" among the listed retailers, not only showing no signs of slowing down, but also has "first-class" execution capability and innovative product array, which is worth 24 billion 500 million US dollars.

Morgan Stanley Morgan Stanley analyst Kimberly Greenberger has given Lululemon Athletica Inc. (NASDAQ:LULU) a rating of "wait and see (Equal-Weight)" based on the market value that has soared 68% since 2019, and the target price is only raised by less than 4% to 169 US dollars.

DA Davidson&Co. analyst John Morris pointed out that the group will face a high base of comparison in the second half of the fiscal year (the sales growth of 18% and 17% respectively in the three quarter and the fourth quarter last year).

The gross profit margin of Lululemon Athletica Inc. in the two quarter was 55%, an improvement of 20 basis points over the same period last year, of which the gross margin of products increased by 90 basis points.