Research Desk Line-up: G-III Apparel Post Earnings Coverage

LONDON, UK / ACCESSWIRE / September 22, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Lululemon Athletica Inc. (NASDAQ: LULU), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=LULU, following the Company's release of its second quarter fiscal 2017 financial results on August 31, 2017. The athletic apparel maker outperformed top- and bottom-line expectations. The Company also updated its guidance for the upcoming quarter and fiscal year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Textile-Apparel Clothing industry. Pro-TD has currently selected G-III Apparel Group, Ltd (NASDAQ: GIII) for due-diligence and potential coverage as the Company announced on September 06, 2017, its financial results for Q2 FY18 which ended on July 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on G-III Apparel when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on LULU; also brushing on GIII. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=LULU

http://protraderdaily.com/optin/?symbol=GIII

Earnings Reviewed

For the second quarter ended July 30, 2017, Lululemon's net revenue jumped 13% to $581.05 million compared to revenue of $514.52 million in Q2 2016. The Company's total comparable sales increased 7% on a y-o-y basis, while comparable store sales increased 2% on a constant dollar basis. Lululemon's revenue numbers beat analysts' expectations of $567.8 million.

During Q2 2017, Lululemon's direct to consumer net revenue increased 29% or increased 30% on a constant dollar basis. During the reported quarter, the Company held an online warehouse sale. Excluding the impact of this sale, direct to consumer net revenue increased 15%, or increased 16% on a constant dollar basis, versus the year-ago comparable period.

For Q2 2017, Lululemon's gross profit totaled $297.42 million, up 17% compared to Q2 2016 gross profit of $254.16 million. The Company's adjusted gross profit was $299.7 million for the reported quarter, up 18% on a y-o-y basis. Lululemon recorded gross margin of 51.2% for the reported quarter, an increase of 180 basis points compared to gross margin of 49.4% in the prior year's same quarter. The Company's adjusted gross margin for Q2 2017 was 51.6%; an increase of 220 basis points.

Lululemon's income from operations was $68.71 million for Q2 2017, reflecting a drop of 7% compared to income from operating of $73.96 million in Q2 2016. The Company's adjusted income from operations gained $0.2 million to $74.1 million on a y-o-y basis. In the reported quarter, Lululemon's operating margin was 11.8%, a decrease of 260 basis points compared to operating margin of 14.4% in Q2 2016. Lululemon's adjusted operating margin was 12.8%, reflecting a drop of 160 basis points.

For Q2 2017, Lululemon's income tax expense was $20.8 million compared to $20.9 million in Q2 2016, and the effective tax rate was 29.9% versus 28.1% in the year-ago corresponding period. The Company's adjusted effective tax rate was 29.6% in the reported quarter compared to 30.5% in the prior year's same quarter.

Lululemon reported net income of $48.71 million, or $0.36 per diluted share, for Q2 2017 compared to net income of $53.63 million, or $0.39 per diluted share, in Q2 2016. The Company's adjusted diluted earnings per share were $0.39 in the reported quarter compared to $0.38 for the year-earlier period. Lululemon's earnings topped Wall Street's estimates of $0.35 per share.

Cash Matters

Lululemon ended Q2 2017 with $721.2 million in cash and cash equivalents compared to $535.3 million at the end of Q2 2016. The Company's inventories at the end of the reported quarter increased by 14% to $316.4 million compared to $277.3 million at the end of the year-ago same period. Lululemon had 421 stores at the end of Q2 2017.

The Company repurchased 1.5 million shares of its own common stock at an average cost of $52.93 per share in the reported quarter

Outlook

For Q3 2017, Lululemon is forecasting net revenue to be in the range of $605 million to $615 million based on a total comparable sales increase in the mid-single digits on a constant dollar basis. The Company's diluted earnings per share are expected to be in the band of $0.33 to $0.35 for the quarter. Excluding the impact of the ivivva restructuring, Lululemon is estimating adjusted diluted earnings per share to be in the range of $0.50 to $0.52 for the quarter.

For FY17, Lululemon is projecting net revenue to be in the band of $2.545 billion to $2.595 billion based on a total comparable sales increase in the low-single digits on a constant dollar basis. The Company is estimating diluted earnings per share to be in the range of $2.04 to $2.11 for the full year. Excluding the impact of the ivivva restructuring, Lululemon is anticipating adjusted diluted earnings per share to be in the range of $2.35 to $2.42 for FY17.

Stock Performance

At the closing bell, on Thursday, September 21, 2017, Lululemon Athletica's stock rose slightly by 0.07%, ending the trading session at $58.60. A total volume of 950.17 thousand shares have exchanged hands. The Company's stock price advanced 8.02% in the last three months. The stock is trading at a PE ratio of 28.24 and currently has a market cap of $8.00 billion.

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SOURCE: Pro-Trader Daily