Lululemon Performance Climbed Again, Double-Digit Growth In Same Quarter Sales In The Fourth Quarter

Thanks to the promotion of holiday spending, Lululemon's performance has climbed again.

In January 14th, the Canadian sports brand announced that it had raised the expected performance in the fourth quarter of fiscal year 2018.

As of the fiscal quarter of February 3, 2019, operating revenue is expected to be between 1 billion 140 million and 1 billion 150 million dollars, up from 1 billion 120 million to 1 billion 130 million dollars before, and earnings per share increased from 1.64 to 1.67 US dollars to 1.72 to 1.74 dollars.

In addition, the fourth quarter, same store sales are expected to show double-digit growth.

Announcements showed that although Messi stores and other retailers said holiday sales failed to meet expectations, Lululemon harvested the strongest holiday season sales in nearly six years.

Lululemon's share price rose by 8.44% to $143.3 after the expected increase in revenue, and its total market capitalization is about $17 billion 500 million.

In the past 12 months, the company's stock price has risen 67%.

Lululemon global CEO Calvin MacDonald (Calvin McDonald) said, "during the whole holiday period, the company's business momentum has been strong, reflecting the recognition of products and our close ties with global customers."

In previous years, sales of Lululemon during the holiday season were good. This is the third time in the past four years that the company has achieved more than expected sales in the fourth quarter.

According to the third quarter earnings report released in December 2018, sales rose 21% to 748 million US dollars in the three months to October 29th, and the same store sales increased by 18% over the past 12 months.

The growth of the international market is still rapid, and the Asian region is the most powerful, with a growth rate of 61%.

At the same time, the company's net profit increased from $58 million 900 thousand last year to $94 million 400 thousand, plus a surplus of $0.71 per share, with a growth rate of 60.3%.

In fact, despite revenue and earnings exceeding analysts' expectations, the fourth quarter's performance outlook has disappointed the capital market.

Immediately after that, the company's share price dropped by 14% on the day of the announcement, and the after market trading fell by 3%. Now it is expected to increase and restore market confidence.

Not long ago, Lululemon announced the launch of a new member experience service, with a price of $128 a year (1280 yuan), customers get a pair of trousers to participate in the whole year's experience activities or fitness courses, and enjoy free express delivery service.

Lululemon chief operating officer Stuart Haselden said at a quarterly conference call that the plan was reacted enthusiastically during the pilot phase and will be extended to a larger market.

The brand expects to promote sales of physical stores through experiential plans.

It is worth noting that although the North American brand is hot in the Yoga market, it will usher in a strong competitor.

In January 9th, Nike announced the launch of a special yoga training dress series, which is under the category of Nike Training training.

In addition to women's Yoga costumes, the brand also launched male exclusive yoga clothing products, this is the Nike brand's first men's Yoga series.

The Nike Training Club application will also release a series of yoga training programs.

This experience, which is called "enhancing the training effect through yoga", can help users complete specific training objectives.

This means that Nike, which has more influential global brands, will compete with Lululemon.

Source: author of the interface: Luo Yingying