Lululemon on Tuesday reported surprise revenue growth, despite lockdowns during the height of the coronavirus pandemic, as stores started reopening in the fiscal second quarter and consumers stocked up on workout apparel and yoga accessories.
But its stock fell by more than 6% in after-hours trading as investors looked for more. The bar on Wall Street was high ahead of the Tuesday report. As of Tuesday’s market close, Lululemon shares were up by more than 51% so far this year, giving it a market cap of $45.5 billion.
CEO Calvin McDonald said the retailer is “cautiously optimistic” about the rest of the year. But Lululemon is not offering a 2020 outlook at this time. It said almost all, 97%, of its stores globally have reopened to date and store sales are averaging about 75% of their levels a year ago.CNBC