Shares of Lululemon Athletica (NASDAQ:LULU) rose about 7% in Friday morning trading after the company announced quarterly profits that met expectations and raised its outlook for the year.
Lululemon said that it earned $57.2 million during its fiscal second quarter, up 49% from $38.4 million in the same period last year. Quarterly income benefited from a change in effective tax rates, including a $7.2 million tax adjustment from prior quarters.
The yoga apparel maker recorded quarterly revenue of $282.6 million, an increase of 33% compared to 2011, but still falling just below the $282.8 million that Wall Street was looking for, Reuters noted.
Adjusted EPS for the second quarter was 31 cents, which matched analysts predictions.
The company said it anticipated a third quarter profit of between 34 cents and 36 cents a share, topping analysts, who predict 33 cents a share.
Company officials said that same-store sales increased 15% over last year. But that was down from a 20% year-over-year same-store sales gain posted last quarter.
Lululemon increased its guidance for year. It now projects earnings of between $1.76 and $1.81 a share on sales of between $1.345 billion to $1.360 billion. That’s up from earlier estimates for earnings of between $1.55 and $1.60 a share on revenue of between $1.32 billion and $1.34 billion.
During the second quarter, the company noted that its inventory increased to $125.4 million, up from $88.9 million last year.