For the third quarter, Lululemon Athletica Inc. reported a net revenue increase of 30 percent to 1.5 billion dollars, while on a constant dollar basis, net revenue increased 28 percent.
The company said in a statement that net revenue increased 28 percent in North America and 40 percent internationally. Total comparable sales increased 27 percent or increased 26 percent on a constant dollar basis.
Commenting on the third quarter trading, Calvin McDonald, the company’s chief executive officer, stated: “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.”
Lululemon’s Q3 earnings per share increase to 1.44 dollars
Comparable store sales increased 32 percent or 31 percent on a constant dollar basis, while direct to consumer net revenue increased 23 percent or 21 percent on a constant dollar basis to 586.5 million dollars.
Third quarter gross profit increased 32 percent to 829.4 million dollars and gross margin increased 110 basis points to 57.2 percent.
Diluted earnings per share were 1.44 dollars compared to 1.10 dollars in the third quarter of 2020 and adjusted diluted earnings per share were 1.62 dollars compared to 1.16 dollars.
The company opened 18 net new company-operated stores during the third quarter, ending with 552 stores.
Lululemon revenues increase 58 percent against Q3 2019
Net revenue increased by 534.3 million dollars or 58 percent, representing a two-year compound annual growth rate of 26 percent.
The company added that gross margin increased 210 basis points and operating margin decreased 140 basis points, while adjusted operating margin increased 20 basis points.
Diluted earnings per share were 1.44 dollars compared to 96 cents in the third quarter of 2019. Adjusted diluted earnings per share were 1.62 dollars in the third quarter of 2021.
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 and diluted earnings per share in the range of 3.24 dollars to 3.31 dollars for the quarter and adjusted diluted earnings per share are expected to be in the range of 3.25 dollars to 3.32 dollars.
For 2021, Lululemon expects net revenue to be in the range of 6.250 billion dollars to 6.290 billion dollars and diluted earnings per share are expected to be in the range of 7.38 dollars to 7.45 dollars for the year and adjusted diluted earnings per share to be in the range of 7.69 dollars to 7.76 dollars.