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Lululemon reported third-quarter earnings Thursday, posting a 30% year-over-year net revenue increase to $1.5 billion. Net income jumped from $143.6 million to $187.8 million.
Revenue in North America rose 28%, and international revenue increased 40%. The athleisure company saw total sales increase 27%, opening 18 new stores during the quarter for a total of 552 in operation.
Lululemon’s men’s business grew 44% from the same period last year, and the company aims to double the division by 2023.
Despite the overall earnings jump, Lululemon’s $500 million acquisition of high-tech fitness brand Mirror isn’t seeing the same success.
- The company cut its outlook for the brand’s sales to between $125 million and $130 million, a significant decline from the previous estimate of up to $275 million.
- A group of Lululemon employees — past and present — told Business Insider that the two brands were struggling to integrate. Mirror’s CEO Brynn Putnam resigned in September.
- Mirror’s machine, normally $1,495, is currently on sale for $995.
Effects of COVID-19
CFO Meghan Frank says the company also continues to navigate ongoing supply chain issues with COVID-19 variants potentially leading to store closures.
Still, the company raised its revenue forecast to between $6.25 billion and $6.29 billion, up from an earlier projection of $6.19 billion to $6.26 billion.
