Lululemon reports 41% digital sales growth in fourth quarter
Lululemon has reported better-than-expected sales and earnings for the fourth quarter, ending 2 February 2020. Revenue increased by 20% compared to the year previous, bringing full-year revenue to £3.275 billion.
Net income rose to $298 million, equivalent $2.28 per share, which is better than the $2.24 per share predicted by Refinitiv data.
The highlight of the quarter was the acceleration in direct-to-consumer revenue, including online sales, which surged 41% year over year, which comprises of more than a quarter of Lululemon's overall business.
Calvin McDonald, Chief Executive Officer, commented: "2019 was a strong year for lululemon, as our teams executed against our Power of Three growth plan. We are now navigating an extraordinary environment, which is currently impacting our business.
"The strength of our brand and strong financial position will help us manage through the day-to-day, while continuing to effectively plan for and invest in our future."
“We do not believe it will change the trend toward people wanting to live active and healthy lifestyles,” he added.
Due to the impact that COVID-19 is having across the globe, and the rapid and continuous developments, Lululemon also announced it will not be providing fiscal guidance for 2020 at this time, but will provide additional updates as the situation warrants.