Athleisure giant Lululemon reported $1.1 billion in net revenue for its 2020 fiscal third quarter after markets closed on Dec. 10. Quarterly revenue jumped 22% as an online sales surge more than compensated for a dip in company-operated store sales.
Lululemon’s earnings report beat Wall Street analysts projections, which had predicted Lululemon would take in $1.01 billion in revenue.
“Our third quarter results demonstrate the strength of lululemon across channels and markets, both in North America and around the world,” Lululemon CEO Calvin McDonald said in a statement. “Our product innovations, investments in the e-commerce business, and strategic acquisition of Mirror position us well to serve our guests as their needs evolve across both physical and digital experiences.”
The company’s quarterly revenue was up 17% from its fiscal second quarter.
While Lululemon said most of its stores have opened since massive pandemic-related shutdowns earlier this year, newly appointed CFO Meghan Frank said on a conference call with analysts that the company has seen a shift to online sales by customers that typically made purchases at brick-and-mortar stores.
Sales at company-operated stores comprised 45.8% of total revenue, down from 63.3% from the same quarter last year. Meanwhile, e-commerce revenue that accounted for 26.9% of total revenue in the same quarter of 2019 jumped to 42.8% of total revenue in Lululemon’s 2020 fiscal third quarter.
Frank said Mirror — the interactive home fitness startup Lululemon purchased for $500 million in June — is expected to surpass $150 million in revenue in 2020.
“We are excited with the momentum we are seeing in this business, particularly the growing community of people sweating with Mirror which continues to [expand] brand awareness,” Frank said.
One new product mentioned by McDonald on the analyst call was a 3D yoga mat, although no details were offered. McDonald also said that Lululemon will enter the footwear market in early 2022.