Sports apparel retailer Lululemon’s shares rally after an upbeat earnings report

Athletic apparel retailer Lululemon Athletica's shares continued rallying on Thursday after Wednesday’s market performance after it posted its second-quarter earnings.

The stock surged more than 13% on Wednesday after the results were announced, during early trading, reaching a record intraday high of $434.22. Shares had last reached an intraday high of $417.85 on August 30. As of Wednesday, Lululemon had gained about 9% year to date, bringing its market value to almost $50 billion.

Demand for athletic goods grew rapidly during the pandemic as cities went under lockdown and forcing Americans to work out at home instead of gyms. Consumers are splurging more money on athleisure clothing styles than dresses, suits, and other formal wear.

Even as the economy reopens and customers return to offices and schools, the company has evolved its fashion trends to suit the change. Last month, the company expanded its On the Move collection with pants "explicitly designed for out-of-studio use."

For its current fiscal year, Lululemon expects revenue to range between $6.19 billion and $6.26 billion, surpassing a key financial goal roughly two years ahead of schedule, reported CNBC.

The firm's earnings per share were $1.65 compared to Refinitiv analysts' expectations of $1.19, and revenue hit $1.45 billion while $1.34 billion was expected.

During an earnings call following the release of the results, CEO Calvin McDonald told investors that the company's products are "ideal for enabling the work-from-home and versatile lifestyle that has grown exponentially in the COVID-19 world," and said both women and men are lining up to buy Lululemon's athletic and athleisure lines.

At the time of going to press, Lululemon’s shares were up by 11.14%, trading at $423.29 per share.

In August, shares of Dick’s Sporting Goods Inc also rallied by nearly 16% after the sporting equipment manufacturer posted a 20.7% sales year-on-year sales growth. Sales of the company grew up to $3.27 billion while net sales grew by 45% compared to Q2 FY19.