Lululemon brick-and-mortar sales rebound, drive 88% revenue surge
Vancouver-based athleticwear company Lululemon Athletica Inc. reported net revenue of $1.2 billion for the first quarter on Thursday, an 88% increase compared to $652.0 million in the prior-year period, progress driven by continued e-commerce growth and the return of store traffic. In constant currencies, revenue rose 83% year over year.
In the first quarter ended May 2, 2021, revenue in stores operated by the company shot up to $536.6 billion, a 106% increase compared to the prior-year period, which was heavily impacted by store closures related to the Covid-19 pandemic. Quarterly direct-to-consumer revenue at Lululemon rose 55% year over year to $545.1 million.
Broken down by region, Lululemon’s revenues increased 82% in North America and 125% internationally.
Net income at the company totaled $145.0 million, or $1.11 per diluted share, compared to $26.6 million, or $0.22 per diluted share, in the same period in the previous year.
In light of the strong negative impact of the coronavirus crisis on its business in the first quarter of last year, Lululemon also provided its financial results for Q1 2019 as a further basis of comparison.
Compared to the first quarter of 2019, when revenue totaled $782.3 million, the company’s latest Q1 revenue represented a 57% rise. Earnings in the first quarter of 2019 totaled $96.6 million, or $0.74 per diluted share.
“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 Lululemon CEO Calvin McDonald in a release. “Our strong performance across categories, channels and geographies demonstrates the momentum and strength of lululemon as we shift into the new normal.”
Looking forward, the company expects to report net revenue of between $1.300 billion and $1.330 billion in the second quarter, while diluted earnings per share are predicted to be in the range of $1.05 to $1.10.
For the full fiscal year 2021, Lululemon expects its revenue to be between $5.825 billion and $5.905 billion. Annual diluted earnings per share are expected to be in the range of $6.52 to $6.65.
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