Sees Good Demand for Workout Apparels, Women’s wear
Lululemon reported third-quarter sales of $1.1 billion, up 22% from a year ago, beating analysts’ estimates as shoppers frequented its stores and website to buy workout apparel.
In North America, net revenue grew 19%, boosted by its e-commerce business.
Overall direct to consumer revenue increased 94%, the company said, representing 42.8% of total revenue compared with 26.9% a year ago.
This represents the sales that Lululemon makes straight to consumers, using its stores and website, without any middlemen.
Due to the uncertainty around the Covid-19 pandemic, which has forced it to shut a handful of its stores temporarily again, Lululemon is not offering a full outlook for 2020.
Like others in retail, Lululemon faces the threat of additional store closures, with coronavirus cases still surging in the U.S. and in other parts of the world.
However, CFO Meghan Frank noted the company has planned for the holiday quarter “based on multiple performance scenarios,” and believes it to be “well positioned” for the holiday season.
During the week of Thanksgiving and Black Friday, the company said its online business drove record sales, offsetting declines in store traffic.
The company said its women’s revenue grew 22% year over year, while men’s was up 14%.
While the apparel category as a whole has struggled this year, Lululemon is one retailer that has reaped the benefits of more consumers focusing on at-home workouts during the pandemic, and opting for comfortable athleisure wear over dresses and suits.
