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Here's What Key Metrics Tell Us About Lululemon (LULU) Q2 Earnings

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Lululemon (LULU - Free Report) reported $2.21 billion in revenue for the quarter ended July 2023, representing a year-over-year increase of 18.2%. EPS of $2.68 for the same period compares to $2.20 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $2.17 billion, representing a surprise of +1.86%. The company delivered an EPS surprise of +5.93%, with the consensus EPS estimate being $2.53.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Lululemon performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Total Comparable Sales(Change in constant dollars): 13% compared to the 11.18% average estimate based on eight analysts.
  • Total stores: 672 versus the eight-analyst average estimate of 670.
  • Comparable Store Sales(Change in constant dollars): 9% versus 10.59% estimated by six analysts on average.
  • Total Gross Square Footage: 2691 Ksq ft versus the six-analyst average estimate of 2688.56 Ksq ft.
  • Revenues- Canada: $294.85 million versus $296.74 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +9.8% change.
  • Revenues- United States: $1.42 billion compared to the $1.43 billion average estimate based on two analysts. The reported number represents a change of +11.5% year over year.
  • Revenues- Outside of North America: $211.89 million versus the two-analyst average estimate of $282.76 million. The reported number represents a year-over-year change of -34.1%.
  • Revenues- Direct to consumer: $893.67 million versus $876.24 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +15.3% change.
  • Revenues- Company-operated stores: $1.10 billion versus $1.08 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +21.5% change.
  • Revenues- Other: $218.55 million versus $211.17 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +15.1% change.
  • Net Revenue by Category- Other categories: $282.12 million versus $238.37 million estimated by two analysts on average.
  • Net Revenue by Category- Men's product: $530.72 million versus the two-analyst average estimate of $525.38 million.
View all Key Company Metrics for Lululemon here>>>

Shares of Lululemon have remained unchanged over the past month versus the Zacks S&P 500 composite's -1.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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