Lululemon Posts Quarterly Sales, Revenue That Beat Estimates
Lululemon Athletica Inc., the upscale yogawear maker, posted third-quarter earnings and revenue that beat expectations as online sales boomed.
- Net revenue rose 22% to $1.1 billion, outpacing estimates. For the key measure of same-store sales, the 18% growth, after excluding currency effects, was also well above the 4.3% estimate from Consensus Metrix.
- Lululemon’s inventory increased 23% at the end of the quarter from a year earlier. That’s a slower pace than the previous period, and signals that its merchandise is flowing out the door.
- While traffic picked up at brick-and-mortar stores, customers continue to favor online shopping. Comparable e-commerce sales rose 93% in the fiscal third quarter when excluding currency impacts, more than the 75% expected by analysts.
- The company has accelerated e-commerce investment during the pandemic to be ready for a holiday surge. It’s also been among the first retailers to offer video consultations with associates. Online sales accounted for 43% of revenue during the quarter.
- The shares alternated between gains and losses in late U.S. trading. The stock has already risen 59% since January.
- For the company statement, clickhere.
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