Vancouver-based athleticwear company Lululemon Athletica Inc. has announced impressive financial results for the first quarter of 2021, demonstrating a strong resurgence in its physical store sales. The company’s net revenue for the quarter reached a staggering $1.2 billion, which marks an astounding 88% increase compared to the same period last year.

Lululemon’s remarkable growth can be attributed to its continuous expansion in the e-commerce sector, as well as the return of customer footfall to its brick-and-mortar stores. In terms of constant currencies, the revenue growth for the company reached an impressive 83% year over year.

One notable factor contributing to Lululemon’s success is the significant surge in revenue from its physical stores, which saw a remarkable 106% increase compared to the previous year’s timeframe. It should be noted that this growth was heavily influenced by the temporary closures of stores due to the Covid-19 pandemic during the same period last year. Furthermore, Lululemon’s direct-to-consumer revenue experienced a significant boost, rising by 55% to reach $545.1 million.

Lululemon’s triumph extends globally, with revenues increasing by 82% in North America and a remarkable 125% internationally.

In terms of net income, Lululemon reported a total of $145.0 million, or $1.11 per diluted share, for the first quarter, signifying a substantial improvement when compared to $26.6 million, or $0.22 per diluted share, during the same period last year.

To provide a more comprehensive context, Lululemon also compared its financial results for the first quarter of 2021 to the same period in 2019. This comparison revealed a promising 57% increase in revenue compared to 2019, when the company generated $782.3 million in revenue. The earnings in the first quarter of 2019 amounted to $96.6 million, or $0.74 per diluted share.

Lululemon’s CEO, Calvin McDonald, expressed his satisfaction with the company’s performance, stating, “Our first quarter results reflected strength across all drivers of growth, fueled by the continued expansion in our e-commerce business and a rebound in brick-and-mortar stores.” He further emphasized the momentum and resilience of Lululemon, particularly as the world transitions into a new normal.

Looking forward, Lululemon has high expectations for the second quarter of 2021, estimating a net revenue between $1.300 billion and $1.330 billion. The company also anticipates diluted earnings per share to range from $1.05 to $1.10. For the full fiscal year 2021, Lululemon forecasts its revenue to be in the range of $5.825 billion to $5.905 billion, with annual diluted earnings per share estimated to be between $6.52 and $6.65.

Lululemon’s robust financial results exemplify its ability to adapt and thrive even amidst uncertain times. As the world gradually recovers from the impact of the pandemic, Lululemon’s strong presence in both the e-commerce and brick-and-mortar markets positions it well for continued success in the athleticwear industry.

Useful links:

Lululemon Athletica Inc. Official Website
Lululemon’s Net Income Surges in Q1