Lululemon Doubles E-commerce Business
Lululemon Athletica continues to benefit from the activewear boom and prolonged emphasis on comfort as consumers work from home.
The Vancouver, British Columbia-based athletic apparel and accessories firm revealed fourth-quarter and full-year earnings Tuesday after the market closed, improving on top-line revenues and logging a $588 million profit for the year.
“I’m proud of how we navigated this past year and delivered for our employees, guests and shareholders. Our continued growth demonstrates the strength of Lululemon — before, during and as the pandemic subsides. We are still in the early innings of our growth, fueled by exciting innovations that create even more opportunity into the future. All of us on the leadership team have so much gratitude for our teams and their agility during these unprecedented times.”
Lululemon Athletica said its e-commerce business continued to accelerate as the retailer capped its fiscal year with revenue soaring 24 per cent in its most recent quarter.
The maker of athletic and yoga wear says its revenue amounted to US$1.7 billion in its fourth quarter, up from $1.3 billion the year prior.
It's a bright moment for us too. We’re so happy to have @themirnavator join us as a Global Run Ambassador. https://t.co/5zJbKO90Lo
— lululemon (@lululemon) March 31, 2021
“Our continued growth demonstrates the strength of Lululemon - before, during and as the pandemic subsides,” stated CEO Calvin McDonald.
“We are still in the early innings of our growth, fuelled by exciting innovations that create even more opportunity into the future.”
Lululemon’s future headquarters in False Creek Flats
Revenue increased 21 per cent in North America and 47 per cent internationally as it opened six net new company-operated stores, increasing its global total to 521.
Comparable sales - a key retail metric - surged 21 per cent.
Direct to consumer revenue increased 94 per cent in the fourth quarter and accounted for more than half of total revenues, up from 33 per cent a year earlier.
The company, which reports in U.S. dollars, recorded net income of about $329 million for the period ended Jan. 31, up from $298 million in 2019.
Lululemon's diluted earnings per share reached $2.52, compared with $2.28 in the fourth quarter of 2019.
Analysts on average had expected Lululemon to report diluted earnings of $2.47 per share, according to financial data firm Refinitiv.
“China is equal to those [other] opportunities for us to invest in. We keep investing in that market,” McDonald said. I’m excited about our international business in all markets. We have a number of guests that only engage with us in our stores and we are focused on reengaging with them”
While many retailers have struggled during the COVID-19 pandemic, Lululemon's sales have remained strong as people working from home purchase more comfortable attire.
For the full-year, Lululemon's net profits decreased 8.8 per cent to $588.9 million from $645.6 million, while revenues rose 11 per cent to $4.4 billion.
Direct to consumer net revenue doubled.
The company expects revenue to range between $1.1 billion and $1.13 billion during the first quarter with net earnings of 81 to 85 cents per share.
Fiscal 2021 is forecast to generate $6.10 to $6.25 per share in diluted earnings with net revenues surging at least 26 per cent to reach between $5.55 billion and $5.65 billion.
