Lululemon Athletica Inc. has achieved impressive financial success in the fourth quarter of 2020, reporting a revenue of $1.7 billion, which marks a 24% increase compared to the previous year. The Vancouver-based athletic apparel company experienced exponential growth in its direct-to-consumer sales, nearly doubling its sales year over year. Adjusted for currency fluctuations, the revenue growth stood at 22%.

During the fourth quarter, Lululemon witnessed a remarkable 94% surge in sales through its direct-to-consumer channel, accounting for 52% of the company’s total revenues. This represents a significant increase from 33% during the same period in 2019. The growth spanned across all regions where the company operates, with North America showing a 21% increase in revenues, and international markets recording a substantial 47% rise.

Although the comparable store productivity declined by 28% in terms of sales, the total comparable sales for the period still saw a growth of 21%. The net income for the fourth quarter amounted to $329.8 million, or $2.52 per diluted share, compared to $298.0 million, or $2.28 per diluted share, in the previous year.

For the full fiscal year of 2020, Lululemon’s net revenue reached $4.4 billion, showcasing an 11% increase from the previous year. Once again, the direct-to-consumer channel played a pivotal role, contributing to a remarkable 101% increase in revenue year over year. In 2020, the direct channel accounted for 52% of the company’s total revenue, a significant jump from 29% in 2019. Annual earnings for the group amounted to $588.9 million, or $4.50 per diluted share, a decrease from $645.6 million, or $4.93 per diluted share, in the previous year.

Reflecting on the company’s success amidst a challenging year, Lululemon’s CFO, Meghan Frank, emphasized their rapid response to the COVID-19 pandemic. This included strategic investments in the direct-to-consumer channel, completing valuable acquisitions, and managing expenses while supporting employees. CEO Calvin McDonald expressed pride in the company’s performance and highlighted the potential for growth driven by innovative initiatives.

Moving forward, Lululemon anticipates net revenue ranging between $1.100 billion and $1.130 billion for the first quarter of fiscal 2021, with estimated earnings per share ranging from $0.81 to $0.85. The company’s guidance for annual revenue in 2021 is projected to be between $5.550 billion and $5.650 billion, with diluted earnings per share predicted to fall between $6.10 and $6.25.

Despite the challenges posed by the pandemic, Lululemon managed to open 30 net new stores in 2020, increasing its global presence to a total of 521 locations. The company remains optimistic about its future growth prospects and is committed to delivering exciting innovations to customers, even as the effects of the pandemic subside.

Sources:
– Lululemon Athletica Inc. [insert link]
– For more financial information, refer to the official Lululemon news release [insert link]