Lululemon Athletica Inc., a well-known athleisure retailer, has achieved a remarkable 20% increase in revenue during the fourth quarter, closing the year on a positive note. The company’s net revenue for the fiscal year 2019 reached an impressive $4 billion, surpassing expectations. Additionally, Lululemon experienced strong total comparable sales, which witnessed a 17% surge. This growth was driven by a 9% increase in comparable store sales and an astounding 35% increase in direct-to-consumer net revenue.
In the fourth quarter alone, Lululemon achieved double-digit sales growth, boasting a net revenue of $1.4 billion, a 20% gain compared to the previous year. Furthermore, the company witnessed a remarkable 20% increase in total comparable sales during this quarter, with a 9% rise in comparable store sales and an exceptional 41% boost in direct-to-consumer net revenue.
During this successful period, Lululemon’s net income for the quarter rose to $298 million, or $2.28 per share, a significant increase from last year’s $218.5 million, or $1.65 per share. Lululemon attributes its triumph to the implementation of their Power of Three growth plan.
However, despite the remarkable performance in 2019, Lululemon faces the impact of the global COVID-19 pandemic. Over the past two months, the company has been compelled to temporarily close its stores worldwide, beginning with all retail locations in mainland China in February and subsequently closing stores in North America, Europe, Malaysia, and New Zealand. Moreover, Lululemon’s distribution center in Sumner, WA, has also been shut down.
Although Lululemon has reopened its stores in China, except for one location, its global retail locations remain closed. Given the uncertain circumstances caused by the pandemic, the company has decided not to provide a fiscal 2020 outlook at this time. Calvin McDonald, Lululemon’s CEO, acknowledges the challenging environment and expresses confidence in the company’s brand and financial position to navigate through these difficult times.
The exceptional performance of Lululemon in 2019 establishes a strong foundation for the company to withstand the current global crisis. As individuals worldwide adapt to new lifestyles and prioritize comfort and wellness, Lululemon’s focus on athleisurewear positions it favorably in the market. While the full impact of COVID-19 on the retail industry remains uncertain, Lululemon remains unwavering in its ability to adapt and continue planning for the future.