Lululemon reported fiscal first-quarter earnings Thursday, and the fitness apparel company is leaving pandemic woes in the dust.
Net revenue increased 88% year-over-year to $1.2 billion in Q1 — revenue from company-operated stores spiked 106% to $536.6 million.
“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,” said CEO Calvin McDonald.
Revenue was down from the $1.73 billion seen in the company’s fourth quarter, when online sales surged 92%.
Net income, however, made a year-over-year leap from $28.6 million to $145 million, and overall sales are up 57% over the past two years. International sales saw a 125% boost during the quarter, a step closer to the company’s goal of growing international operations to the same size as its North American business.
Lululemon raised its forecast for FY2021 after the promising Q1 results.
- Expected net revenue for 2021 is between $5.83 billion and $5.91 billion, up from $5.55-$5.65 billion.
- The company is projecting $1.3 billion in second-quarter sales.
- Lululemon is also aiming to double its menswear revenue to $1.4 billion by 2023. Men’s sales rose by 17% in Q4, and the brand says the category is growing faster than its women’s apparel.
Mirror — the at-home fitness startup Lululemon acquired for $500 million in 2020 — is expected to bring in $250-$275 million in revenue this year.
Despite the positive earnings, Lululemon stock was down 1% on the day to $317.36 at market close Thursday. Shares hit a 2021 high of $367.29 in the first week of January but haven’t returned to those levels since.