Vancouver-based athletic wear company Lululemon Athletica Inc. has announced impressive sales growth in its third quarter financial results. Despite the ongoing challenges of global supply chain disruptions, Lululemon reported a significant 30% increase in net revenue, reaching $1.5 billion compared to $1.1 billion in the same period the previous year.

Delving deeper into the numbers, Lululemon’s international revenue saw an even stronger growth rate of 40% year over year in Q3. This remarkable growth can be attributed to a 27% increase in comparable sales, with a notable 32% rise in comparable store sales and a 23% growth in direct-to-consumer revenue. Although direct-to-consumer revenue accounted for a slightly smaller share of the total revenue at 40.4% compared to the previous year’s 42.8%, it remains a significant contributor to Lululemon’s overall performance.

Breaking down the regional performance, Lululemon’s net revenues in North America grew by 28% year over year, while international net revenues saw a remarkable 40% increase. This demonstrates the company’s ability to capture a global market share and thrive in diverse geographical locations.

Lululemon’s net income for Q3 reached an impressive $187.8 million, a significant rise from the $143.6 million reported in the same quarter of the previous year. Diluted earnings per share also experienced growth, reaching $1.44 compared to $1.10 a year ago.

The chief financial officer of Lululemon, Meghan Frank, expressed satisfaction with the strong performance, citing the company’s high-level execution as a key factor. She also acknowledged the challenges presented by the ongoing industry-wide supply chain issues.

Looking at the year-to-date figures, Lululemon’s net revenue for the first nine months of 2021 stood at $4.1 billion, showcasing an impressive 54% increase compared to the same period in 2020. Net income also experienced a significant jump, reaching $540.8 million, or $4.14 per diluted share, compared to $259.1 million, or $1.98 per diluted share, in the first nine months of the previous year.

In terms of the fourth quarter outlook, Lululemon predicts its net revenue to range between $2.125 billion and $2.165 billion, with diluted earnings per share expected to fall between $3.24 and $3.31. Despite the anticipation of several large volume weeks, the company remains confident in ending 2021 on a high note.

Looking ahead to the full fiscal year 2021, Lululemon expects net revenue to reach between $6.250 billion and $6.290 billion, highlighting its strong growth trajectory. Annual diluted earnings per share are forecasted to fall in the range of $7.38 to $7.45.

In terms of store operations, Lululemon opened 18 net new company-operated stores during the third quarter, bringing the total number of locations worldwide to 552. This expansion reflects the company’s commitment to reaching customers across the globe and its strong growth trajectory.

Despite the challenges posed by supply chain disruptions, Lululemon has managed to maintain a strong sales growth trend in the third quarter. The company’s ability to adapt to market demands, expand its international presence, and deliver exceptional products positions it well for a successful end to 2021 and a promising future ahead.

Two links relevant to the article:
1. Lululemon Official Website
2. Lululemon Stock Performance