Lululemon books Q3 sales, profit increase

Lululemon Athletica reported a sales increase of 28% to US$1.9bn and operating income grew 37% to $352.4m.

Net income rose to $255.5m compared with $187.8m.

Calvin McDonald, CEO, stated: “In the third quarter, we continued to deliver strong and balanced results across the business, demonstrating the significant potential for our brand. Our ongoing momentum is a testament to our innovative products, deep community relationships, and the hard work and dedication of our talented teams around the world. We are pleased with our early holiday season performance and look forward to all that’s ahead for Lululemon as we continue to deliver on our Power of Three ×2 growth plan.”

Meghan Frank, Lululemon, CFO, added: “We are proud to have delivered another quarter of strong sales and earnings growth, despite an operating environment that remains dynamic. These results illustrate the strength and differentiation of our omni-operating model and position us well to deliver ongoing value for our stakeholders. We look forward to a strong finish to our fiscal year.”

2022 Outlook

For the fourth quarter of 2022, the company expects net revenue to be in the range of $2.605bn to $2.655bn, representing a three-year compound annual growth rate of approximately 24%. Diluted earnings per share are expected to be in the range of $4.20 to $4.30 for the quarter.

For 2022, the company expects net revenue to be in the range of $7.944bn to $7.994bn, representing a three-year compound annual growth rate of approximately 26%. Diluted earnings per share are expected to be in the range of $9.94 to $10.04 for the year and, excluding the gain on the sale of an administrative office building, adjusted diluted earnings per share are expected to be in the range of $9.87 to $9.97.

In the summer of 2022, Lululemon announced several moves to expand its presence, globally. It was announced Lululemon was taking steps to expand into China by officially launching on JD.com.

And it announced plans to launch in Spain, its first new market since 2019. The move was part of Lululemon’s Power of Three ×2 growth plan, which includes a quadrupling of its international revenue from 2021 levels by year-end 2026.

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