Lululemon Athletica Inc. continues to outperform.
The Vancouver, British Columbia-based athletic attire and equipment firm revealed quarterly outcomes Thursday afternoon, enhancing on high and backside strains whereas logging greater than $1 billion in revenues.
“Our third-quarter outcomes display the energy of Lululemon throughout channels and markets, each in North America and around the globe,” Calvin McDonald, the agency’s chief government officer, stated in an announcement. “Our product improvements, investments within the e-commerce enterprise and strategic acquisition of Mirror place us properly to serve our company as their wants evolve throughout each bodily and digital experiences.”
In truth, the retailer outperformed in practically all channels. For the three-month interval ending Nov. 1, complete firm revenues elevated 22 % to greater than $1.1 billion, in contrast with $916 million the identical time final yr. Whole comparable gross sales elevated 19 % through the quarter, whereas direct-to-consumer web income surged 94 %, year-over-year.
McDonald added on Thursday night’s convention name with analysts that gross sales within the girls’s division grew 22 % through the quarter — again to pre-COVID-19 ranges — whereas revenues in males’s have been up 14 %.
It was solely comparable retailer productiveness that fell about 17 % through the quarter. However McDonald added on the decision that Lululemon had robust e-commerce gross sales through the quarter, together with e-commerce comps in Europe up 160 % year-over-year and report on-line gross sales throughout Black Friday weekend, offsetting declines in retailer visitors.
The firm logged $143 million in earnings, up from $125 million the identical time final yr, consequently.
“Our efficiency this quarter was pushed by robust omni momentum, with notable energy in conversion and elevated visitors to our e-commerce websites,” stated Meghan Frank, chief monetary officer. “We’ve deliberate the fourth quarter based mostly on a number of efficiency situations and imagine we’re properly positioned for the vacation season.”
The ath-leisure craze and workout-from-home traits, which proceed ad infinitum, have helped Lululemon achieve a stronger foothold available in the market towards sportswear giants reminiscent of Nike Inc. and Adidas. As well as, the retailer bought Mirror, the at-home health system, for $500 million in June. The corporate anticipates Mirror will generate revenues of about $150 million in 2020.
“We’re simply in the beginning of our journey with Mirror,” McDonald stated on the decision.
“Our model is turning into stronger,” he added. “Our company live a extra lively life. We’re within the early innings of that addressable market and successful at a higher price than others. There are a selection of progress drivers that we anticipate will proceed in 2021.”
He credited worldwide enlargement and energy within the product pipeline as a progress drivers, together with girls’s bras, yoga mats (the corporate plans to quickly launch a 3-D-version mat) and footwear, which is coming in 2022.
The retailer has additionally lately added a number of members to its senior management staff, together with Stacia Jones because the agency’s first vp, international head of inclusion, range, fairness and motion, and Frank, the corporate’s first feminine cfo.
Lululemon ended the quarter with $481 million in money and money equivalents and 515 company-operated shops, about 95 % of which have been open through the quarter.
“We’re bullish on shops as shops stay an essential a part of Lululemon’s progress story,” Celeste Burgoyne, president of Americas and international visitor innovation, stated on the decision.
The variety of shops in Mainland China, for instance, has tripled in the previous few years, McDonald stated on the decision. The corporate now plans to open between 30 and 35 shops within the coming yr, along with about 100 vacation pop-ups through the present quarter. Lululemon additionally has 18 Mirror shops-in-shop, however McDonald stated on the decision that he expects these will develop to a whole bunch within the coming yr.
Lululemon shares, which closed up 1.52 % on Thursday to $369.07, are up greater than 58 % year-over-year. The corporate is just not offering forward-looking steerage, however analysts are bullish on the inventory.
“Lulu is certainly one of retail’s finest progress shares,” Jay Sole an analyst at UBS, wrote in a word. “The corporate has a dominant model, [international] progress potential and class tailwinds. We forecast Lulu delivering [positive high single digits] share annual comp progress, on common, over the subsequent 4 years, publish COVID-19. The keys are one, the athleticwear class doubtless continues to take share and, two, Lululemon has very robust model loyalty and product execution capabilities, which ought to assist it outgrow different manufacturers.”
