Lululemon delivered its second-quarter earnings report on Thursday afternoon.
The company announced earnings for the second quarter of $0.38 a share, in line with expectations of $0.38 a share.
Additionally, Lululemon generated $514.5 million in revenue, a hair below expectations of $514.7 million. This was a 14% increase from the second quarter of fiscal 2015.
The stock plunged over 8% to $70.48 in after-hours trading in the immediate aftermath of the report’s release.
“Our progress in the second quarter, especially in gross margin and inventory, marks the beginning of our recovery in profitability and sustainable long term growth,” Laurent Potdevin, Lululemon’s CEO, wrote in the earnings release.
Same-store sales, including direct-to-consumer but excluding FX-adjustments, rose 5.0%, below expectations of 5.9%, according to Bloomberg.
In the third quarter, Lululemon expects to come in between $535 million and $545 million. Wall Street analysts were expecting $541 million, according to Bloomberg.