Lululemon Athletica Inc. (NASDAQ:LULU) shares traded higher on Wednesday. The move comes after Target reported robust second-quarter earnings results, which has lifted sentiment across the retail and consumer discretionary sectors.

What To Know: The positive movement in Lululemon's stock is largely due to to Target Corp's (NYSE:TGT) impressive second-quarter 2024 financial results, which exceeded expectations.

Q2 2024 Results:

• GAAP and adjusted EPS: $2.57, up 40% year-over-year.
• Operating income: $1.6 billion, up 36.6% year-over-year.
• Operating income margin: 6.4%, up from 4.8% in 2023.

Q3 2024 Guidance:

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

Full-Year 2024 Guidance:

• Expected GAAP and adjusted EPS: $9.00 to $9.70, up from a prior range of $8.60 to $9.60.

Target CEO Brian Cornell highlighted strength across consumer discretionary items in the retailer's earnings report, and said the biggest improvement was across apparel, which likely benefitted Lululemon stock.

"We also saw improving trends across our discretionary categories, most notably in apparel, and we're seeing continued strength in beauty," Cornell said.

Investors are now looking ahead to the Lululemon's upcoming second-quarter earnings report, scheduled for Aug. 29 after the market close. Analysts expect EPS of $2.95 and revenue of $2.417 billion, according to Benzinga Pro.

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

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