LOOK: Lululemon stock is soaring today. Here’s why

While profit is down, revenue is up, surprisingly so

Lululemon shares are up roughly 15 per cent midday after CEO Laurent Potdevin unveiled the company’s latest financials in an investor phone conference Thursday morning. In short, the company’s forecast has been raised due to higher-than-expected revenue: a 13 per cent increase in the second quarter. Although profit was down 14 per cent thanks to an increase in operational costs, which were up 21 per cent. Potdevin said he planned to curb these expenses by growing Lululemon’s online sales, where overhead is lower. He’s also focussing on improving Lululemon’s core products and expanding globally. Investors appeared to like the pitch, as this morning’s stock price surge initially peaked at 18 per cent—the biggest early-morning gain Lululemon has seen in three years. Needless to say, it’s a good start for Potdevin, who took on the top job this spring.