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June 4, 2021

Lululemon Revenue Skyrockets in First Quarter

Lululemon reported fiscal first-quarter earnings Thursday, and the fitness apparel company is leaving pandemic woes in the dust.

Net revenue increased 88% year-over-year to $1.2 billion in Q1 — revenue from company-operated stores spiked 106% to $536.6 million.

“Our first-quarter results reflected strength across all drivers of growth, fueled by the continued expansion in our e-commerce business and a rebound in brick-and-mortar stores,” said CEO Calvin McDonald. 

Revenue was down from the $1.73 billion seen in the company’s fourth quarter, when online sales surged 92%.

Net income, however, made a year-over-year leap from $28.6 million to $145 million, and overall sales are up 57% over the past two years. International sales saw a 125% boost during the quarter, a step closer to the company’s goal of growing international operations to the same size as its North American business.

Lululemon raised its forecast for FY2021 after the promising Q1 results.

  • Expected net revenue for 2021 is between $5.83 billion and $5.91 billion, up from $5.55-$5.65 billion.
  • The company is projecting $1.3 billion in second-quarter sales.
  • Lululemon is also aiming to double its menswear revenue to $1.4 billion by 2023. Men’s sales rose by 17% in Q4, and the brand says the category is growing faster its women’s apparel.

Mirror — the at-home fitness startup Lululemon acquired for $500 million in 2020 — is expected to bring in $250-$275 million in revenue this year.

Despite the positive earnings, Lululemon stock was down 1% on the day to $317.36 at market close Thursday. Shares hit a 2021 high of $367.29 in the first week of January but haven’t returned to those levels since.

The post Lululemon Revenue Skyrockets in First Quarter appeared first on Front Office Sports.

Front Office Sports June 4, 2021 at 07:08AM Abigail Gentrup

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