Executive Summary

• Lululemon reported adjusted 2Q16 EPS of $0.38, in line with the consensus estimate and up 11.8% year over year. Revenues were $514.5 million, up 13.6% year over year and slightly below the consensus estimate of $515.8 million.
• The company saw strength in tops, particularly its bras and tank tops which grew 13% and 3% respectively year-over-year.
• For fiscal year 2016, Lululemon expects net revenue to be in the range of $2.325 billion to $2.350 billion based on comparable sales in the mid-single digits, above the consensus estimate, and EPS guidance is $2.11 to $2.19, above the $1.89 consensus estimate.