Lululemon Athletica’s Q1 revenue climbed 88 percent, with consumers returning back to shopping in physical stores and continuing to spend more on athleisure.
The company’s revenue rose to $1.23 billion, ahead of the $1.13 billion analysts had expected. In addition, Lululemon’s Q1 revenue marked a significant rise from $652 million a year before, when the company’s stores were shut down due to lockdown measures.
Its net income grew to $145 million, or $1.11 per share. This was up from $28.6 million, or 22 cents per share, a year ago. The company earned $1.16 per share, excluding one-time charges, which was higher than the 91 cents per share analysts had expected, the company noted in an announcement yesterday.
The company benefitted from growth in its men’s business, which grew faster than women’s compared to last year. Sales for the men’s division were up by 57 percent on a two-year basis.
The company also profited from growth in its direct-to-consumer business. Revenue from its D2C sales increased by 55 percent, reaching $545 million year-over-year.
“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,” the company’s CEO Calvin McDonald said. “Our strong performance across categories, channels and geographies demonstrates the momentum and strength of lululemon as we shift into the new normal.”
Looking ahead, the company is expecting growth in its international business. In fact, it expects its international business to become equal to its business in the North American market.
Lululemon’s sales in North America grew 82 percent, while sales in other international markets were up 125 percent. Still, there is a long way to go as at the end of last year; international sales represented only 14 percent of the company’s total business.
The company also noted that it expects some of its new initiatives and product lines to drive sales in the year ahead. For example, the company is currently piloting a trade-in and resale program and it has launched a new line of more eco-friendly products.
The company’s MIRROR business, which competes with brands such as Peloton and Tonal, is also growing. It is expected to bring in $250 million to $275 million in revenue this year.