Lululemon sales rise 30% in third quarter
Vancouver-based athletic wear company Lululemon Athletica Inc. reported net revenue of $1.5 billion for the third quarter on Thursday, an increase of 30% from $1.1 billion in the same period in the previous year, despite ongoing global supply chain disruptions.
On a constant dollar basis, the company’s net revenue increase in the third quarter ended October 31, 2021, was 28%.
Comparable sales at the brand rose 27%, reflecting a 32% increase in its comparable store sales and 23% growth in its direct-to-consumer revenue. Direct-to-consumer revenue accounted for 40.4% of Lululemon’s total revenue in the quarter, compared to 42.8% in the prior-year period.
Broken down by region, the company’s net revenues were up 28% year over year in North America and increased 40% internationally.
Lululemon’s Q3 net income totaled $187.8 million, compared to $143.6 million in the previous year’s third quarter, while diluted earnings per share were $1.44, up from $1.10 a year ago.
“Our teams continue to execute at a high level, which has enabled our strong Q3 performance,” commented Lululemon CFO Meghan Frank in a release. “We are pleased with these results given the ongoing, industry-wide supply chain issues we continue to navigate.”
Year to date, Lululemon’s net revenue totaled $4.1 billion, representing an increase of 54% compared to $2.7 billion a year earlier. Net income for the period was $540.8 million, or $4.14 per diluted share, compared to $259.1 million, or $1.98 per diluted share, in the first nine months of 2020.
In the fourth quarter, the company currently expects its net revenue to be in the range of $2.125 billion to $2.165 billion, while diluted earnings per share are predicted to to be between $3.24 and $3.31.
“While there are several large volume weeks ahead of us, we feel well positioned for a strong end to 2021,” added Frank.
For the full fiscal year 2021, Lululemon expects to see net revenue of between $6.250 billion and $6.290 billion. Annual diluted earnings per share are expected to be in the range of $7.38 to $7.45.
Having opened 18 net new company-operated stores over the course of the third quarter, Lululemon currently operates 552 locations around the world.
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