Skip to Content

Lululemon's direct sales nearly double in Q4

By Claudia Assis

'Early innings of growth,' retailer's CEO says

Lululemon Athletica Inc. said late Tuesday that its direct-to-consumer sales nearly doubled in the fourth quarter, making up half of its total sales as the retailer topped Wall Street expectations for the quarter and said it was in the "early innings" of its growth.

Lululemon (LULU) said it earned $330 million, or $2.52 a share, in the quarter, compared with earnings of $298 million, or $2.28 a share, in the year-ago quarter.

Adjusted for one-time items, the company earned $2.58 a share. Sales rose 24% to $1.7 billion, the company said.

Direct-to-consumer sales nearly doubled, and represented 52% of total sales in the quarter, compared with 33% of sales in the fourth quarter of 2019, Lululemon said.

Analysts polled by FactSet expected the retailer to report adjusted earnings of $2.49 a share on sales of $1.66 billion in the quarter.

Shares of Lululemon rose 1% immediately after reporting earnings, but pared gains as the after-hours session progressed.

The company's "continued growth demonstrates the strength of lululemon -- before, during and as the pandemic subsides," Chief Executive Calvin McDonald said in a statement. "We are still in the early innings of our growth, fueled by exciting innovations that create even more opportunity into the future."

Lululemon guided for fiscal first-quarter revenue between $1.10 billion and $1.13 billion, and EPS between 81 cents and 85 cents. Adjusted EPS was seen in a range between 86 cents and 90 cents.

For full fiscal 2021, Lululemon called for revenue between $5.55 billion and $5.65 billion. It guided for adjusted per-share earnings between $6.30 and $6.45.

Lululemon stock has fallen nearly 9% in the past 12 months, contrasting with gains around 51% for the S&P 500 index .

-Claudia Assis; 415-439-6400;


(END) Dow Jones Newswires

03-30-21 1630ET

Copyright (c) 2021 Dow Jones & Company, Inc.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.