Lululemon reported sales of $1.12 billion in the third quarter, up 22% year over year, exceeding analysts’ expected $1.02 billion on increased demand for workout gear, according to CNBC. Excluding one-time charges, the company earned $1.16 per share, up from the expected 88 cents per share.
- In North America, Lululemon’s net revenue grew 19%, boosted by its e-commerce business.
- Overall direct to consumer revenues rose by 94%, about 42.8% of total revenue, up 26.9% year over year
- Same-store sales, which track sales made online and at stores open for at least 12 months, rose by 19%.
- Women’s revenue grew 22% year over year while men’s rose by 14%
- Lululemon did not issue a full outlook for 2020 as it faces the threat of additional store closures due to the surging coronavirus pandemic, but the company is well-positioned for the holiday season
- Earlier this year, Lululemon acquired at-home exercise equipment maker, Mirror, for $500 million and, in the quarter, started selling the start-ups $1,500 mirror-like devices in 18 stores and on its website.
- Lululemon shares have gained more than 59% year to date, bringing the company’s market capitalization to $48.1 billion.
Lululemon’s stock is currently declining. LULU: NASDAQ is down 0.97% on the premarket.