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Lululemon Athletica (NASDAQ:LULU) reported better-than-expected second-quarter earnings but saw its stock tumble 7% in after-hours trading due to soft revenue guidance for the upcoming quarter and full year.

The athletic apparel retailer posted adjusted earnings per share of $3.15 for the quarter ended July 28, surpassing analyst estimates of $2.94. Revenue grew 7% YoY to $2.4 billion, slightly below the consensus forecast of $2.41 billion.

Comparable sales increased 2%, or 3% on a constant dollar basis. While international sales surged 29%, growth in the Americas slowed to just 1%.

Looking ahead, Lululemon provided weaker-than-anticipated revenue guidance. For the third quarter, the company expects revenue between $2.34 billion and $2.365 billion, below analyst projections of $2.41 billion.

Full-year revenue guidance of $10.375 billion to $10.475 billion also fell short of the $10.62 billion consensus.

"In the second quarter, lululemon delivered revenue and earnings growth, with ongoing strength across our international business," said CEO Calvin McDonald. "In the U.S., our teams continue to optimize our product assortment and remain focused on driving forward our opportunities in the market."

Gross margin expanded 80 basis points to 59.6%, while operating margin increased 110 basis points to 22.8%. The company opened 10 net new stores during the quarter, ending with 721 locations.

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