Lululemon's Q3 sales and earnings increase
11 Dec 2020
Lululemon Athletica Inc., for the third quarter of fiscal 2020, reported net revenue increase of 22 percent to 1.1 billion dollars, while on a constant dollar basis, net revenue increased 21 percent. The company said, net revenue increased 19 percent in North America, and increased 45 percent internationally, while total comparable sales increased 19 percent or increased 18 percent on a constant dollar basis. The company added that diluted earnings per share were 1.10 dollars compared to 96 cents in the third quarter of fiscal 2019, while adjusted diluted earnings per share were 1.16 dollars for the third quarter of fiscal 2020.
Commenting on the third quarter results, Calvin McDonald, the company’s Chief Executive Officer, said in a statement: “Our third quarter results demonstrate the strength of Lululemon across channels and markets, both in North America and around the world. Our product innovations, investments in the e-commerce business, and strategic acquisition of Mirror position us well to serve our guests as their needs evolve across both physical and digital experiences.”
Highlights of Lululemon’s Q3 results
The company further said that direct to consumer net revenue increased 94 percent or increased 93 percent on a constant dollar basis. Comparable store productivity was 83 percent or 82 percent on a constant dollar basis, representing a comparable store sales decrease of 17 percent or a decrease of 18 percent on a constant dollar basis.
Gross profit for the quarter increased 24 percent to 627.4 million dollars and gross margin increased 100 basis points to 56.1 percent. Operating margin decreased 90 basis points to 18.3 percent and adjusted operating margin decreased 10 basis points to 19.1 percent.
The company opened nine net new company-operated stores during the quarter, ending with 515 stores.