VANCOUVER – Canadian sports and leisurewear business, Lululemon, has reported better than expected third quarter results with net revenues up 14 per cent on a year ago to US$619m. Same-store sales for the business, including sales online and stores which have been open at least one year, were up by 8 per cent.
The Vancouver-based company, known for its yoga-wear, said it had achieved profits of 43 cents per share, while earnings adjusted for non-recurring costs were 56 cents per share.
For the fourth quarter ending in January 2018, Lululemon said it now expects its per-share earnings to range from US$1.19 to US$1.22, with revenues in the range of US$870 million to US$885 million.
The impressive results give Lululemon vital momentum heading into holiday season. They also cast doubts over suggestions that sports apparel is falling out of favour with consumers, as some analysts had suggested after Nike and Under Armour had seen sales tumble this year.
We like the approach taken by Lululemon which is seeking to maintain momentum by continually adding new products as well as entering overseas markets, where there is still considerable mileage in the Lululemon brand.
Company CEO Laurent Potdevin was bullish on the back of results which were considerably above industry forecasts.”Our teams powerfully delivered robust results across both store and digital channels this quarter, driving a further acceleration in our business,” he said. “The strength of our Q3 earnings supports our unique position as the global brand defining an active, mindful lifestyle.
Mr Potdevin added: “As we start the holiday season, I’m energised by our momentum and we are increasing guidance to reflect this performance. I’m grateful for the enthusiasm I see every day across our collective as we remain on our path to delivering US$4 billion in revenue in 2020.”