Lululemon revenues increase 30% to $1.5 billion in third quarter
Activewear and lifestyle brand Lululemon Athletica has released its financial results for the third quarter of 2021, revealing revenue and profit grew above expectations.
Net revenue increased 30% to $1.5 billion, ahead of expectations for $1.41 billion and up from $1.12 billion in the same period in 2020.
Direct to consumer net revenue increased 23% to $586.5 million. On a constant dollar basis, direct to consumer net revenue increased 21%. Direct to consumer net revenue represented 40.4% of total net revenue compared to 42.8% for the third quarter of 2020.
Gross profit increased 32% to $829.4 million and gross margin increased 110 basis points to 57.2%.
The activewear company also opened 18 new company-operated stores during the second quarter, ending the period with 552 stores.
Calvin McDonald, Chief Executive Officer at lululemon Athletica, said: "Our third quarter results demonstrate the ongoing strength of lululemon and the tremendous growth potential of the business in both the near- and long-term. We are pleased with our early holiday season performance and how the lululemon brand continues to resonate in markets around the world. We are energized by the exciting opportunities ahead, and I'm proud of our teams across the globe for their passion and agility – I want to thank everyone for delivering a strong quarter."
The company attributed the boost in revenue to Lululemon’s men’s business, which grew 44% year over year. Lululemon added that its plans to double the men’s division by 2023 are running ahead of schedule. Sales in womenswear, the company’s core business, were up 25%.
However, Lululemon has lowered its outlook for the sales of its Mirror devices to be between $125 million and $130 million, while it was previously looking for between $250 million and $275 million.
For the fourth quarter of 2021, the company expects net revenue to be in the range of 2.125 billion dollars to 2.165 billion dollars.