Lululemon Athletica Inc. LULU Shares traded higher on Wednesday. The move came after Target reported robust second-quarter results, lifting sentiment in the retail and consumer goods sectors.

What you should know: The positive development of Lululemon shares is largely due to Target Corp.s TGT impressive financial results in the second quarter of 2024 that exceeded expectations.

Results Q2 2024:

• GAAP and adjusted earnings per share: $2.57, up 40% year over year.
• Operating profit: $1.6 billion, an increase of 36.6% year-over-year.
• Operating profit margin: 6.4%, compared to 4.8% in 2023.

Forecast for the third quarter of 2024:

• Expected comparable sales growth: 0% to 2%.
• GAAP and adjusted EPS guidance: $2.10 to $2.40.

Forecast for the full year 2024:

• Expected GAAP and adjusted earnings per share: $9.00 to $9.70, compared to the prior range of $8.60 to $9.60.

CEO of Target Brian Cornell highlighted strength in the consumer goods division in the retailer’s earnings report and said the biggest improvements were in the apparel division, which would likely benefit Lululemon stock.

“We also saw improvements across all of our consumer categories, particularly apparel, and we see continued strength in beauty,” Cornell said.

Investors are now eagerly awaiting Lululemon’s upcoming second-quarter earnings report, which is scheduled to be released after the market closes on August 29. Analysts expect earnings per share of $2.95 and revenue of $2.417 billion, according to Benzinga Pro.

LULU price promotion: Lululemon shares closed up 1.93% at $265.63 on Wednesday, according to Benzinga Pro.

See also:

Image via Shutterstock.