Lululemon Athletica retailer exterior, Ponce Metropolis Market.John Greim | LightRocket | Getty PhotographsLululemon on Thursday reported gross sal
Lululemon Athletica retailer exterior, Ponce Metropolis Market.
John Greim | LightRocket | Getty Photographs
Lululemon on Thursday reported gross sales of $1.1 billion, up 22% from a 12 months in the past and beating analysts’ estimates, as buyers frequented the retailer’s shops and web site to purchase exercise attire through the interval.
In North America, web income grew 19%, boosted by its e-commerce enterprise. General direct to client income elevated 94%, the corporate mentioned, representing 42.8% of whole income in contrast with 26.9% a 12 months in the past. This represents the gross sales that Lululemon makes straight to shoppers, utilizing its shops and web site, with none middlemen.
Because of the uncertainty across the Covid-19 pandemic, which has compelled it to close a handful of its shops briefly once more, Lululemon isn’t providing a full outlook for 2020. Like others in retail, Lululemon faces the specter of further retailer closures, with coronavirus instances nonetheless surging within the U.S. and in different components of the world.
Nonetheless, CFO Meghan Frank famous the corporate has deliberate for the vacation quarter “primarily based on a number of efficiency eventualities,” and believes it to be “properly positioned” for the vacation season. Throughout the week of Thanksgiving and Black Friday, the corporate mentioned its on-line enterprise drove report gross sales, offsetting declines in retailer visitors.
Lululemon shares pared preliminary beneficial properties, falling round 1% in after-hours buying and selling simply earlier than 5 p.m. As of Thursday’s market shut, Lululemon shares had run up greater than 59% 12 months up to now, bringing the corporate’s market cap to $48.1 billion.
This is how the retailer did throughout its fiscal third quarter, in contrast with what analysts have been anticipating, primarily based on Refinitiv knowledge:
- Earnings per share: $1.16, adjusted, vs 88 cents, anticipated
- Income: $1.12 billion vs. $1.02 billion, anticipated
For the quarter ended Nov. 1, Lululemon earned $143.6 million, or $1.10 per share, in contrast with $126 million, or 96 cents per share, a 12 months in the past. Excluding one-time costs, it earned $1.16 per share, higher than the 88 cents anticipated by analysts.
Internet income rose 22% to $1.12 billion, beating analysts’ estimates of $1.02 billion.
Identical-store gross sales, which monitor gross sales made on-line and at shops open for a minimum of 12 months, have been up 19%.
The corporate mentioned its girls’s income grew 22% 12 months over 12 months, whereas males’s was up 14%.
Whereas the attire class as an entire has struggled this 12 months, Lululemon is one retailer that has reaped the advantages of extra shoppers specializing in at-home exercises through the pandemic, and choosing snug athleisure put on over attire and fits.
“Whereas a V-shaped restoration will not be materializing for many of attire retail, Lululemon has bounced again from the weak begin to its 12 months with a surprising set of third-quarter numbers,” GlobalData Retail Managing Director Neil Saunders mentioned.
“Our knowledge additionally present that Lululemon has picked up loads of new buyers, particularly in womenswear,” he added.
Earlier this 12 months, Lululemon additionally acquired the at-home train tools maker Mirror for $500 million, in a bid to compete with the likes of cycle maker Peloton. Throughout the quarter, Lululemon mentioned it began promoting the start-ups $1,500 mirror-like units in 18 shops and on its web site.
Yow will discover the complete earnings press launch right here.