Lululemon revenue tops record $6 billion in 2021 – WWD
Lululemon Athletica Inc. continues its growth curve.
And chief executive Calvin McDonald said the company has plenty of momentum with opportunities still in its core business as well as new stores on tap, new categories such as rollout and the ability to expand internationally. .
The brand was one of the few to post solid gains during the pandemic – and it continued to strengthen in the fourth quarter.
Net income rose 31.7% to $434.5 million, or $3.36 per diluted share, from $329.8 million, or $2.52, a year earlier.
Adjusted earnings per share of $3.37 came in 9 cents higher than Wall Street analysts of $3.28 expected.
Revenue for the three months ended Jan. 30 rose 23.1% to $2.1 billion from $1.7 billion a year earlier.
“The fourth quarter was the end of a strong year,” McDonald told analysts on a conference call. Wall Street seemed to agree as Lululemon shares rose 7.4% to $369.28 in after-hours trading.
Although many macro trends are weighing on most brands – from wartime unrest in Ukraine to the pandemic and supply chain backups to inflation – the CEO instead highlighted the big trends in favor of the brand. .
“Lululemon continues to benefit from several consumer trends that uniquely position us in the market,” McDonald said. “First, category strength as activewear continues to outpace overall apparel growth. Second, the growing importance of versatility both as customers engage in their fitness routines fit and in their daily lives.Thirdly, the importance of both physical retail and the convenience of digital engagement.These speak particularly well of our ubiquitous operating model and, finally, the growing focus on physical, mental and social well-being given all that people navigate around the world.
For the full year, Lululemon’s net income increased 65.6% to $975.3 million, or $7.49 per diluted share, from $588.9 million, or $4.50, in 2020. Revenue grew 42.1% to $6.3 billion.
The company opened 53 new stores last year, bringing it a total of 574 doors.
The company repurchased 2.2 million shares for a total of $812.6 million last year and expects to continue with further $1 billion buyback authorization from its board last week. .
This year, the company is looking to post earnings per share of $9.15-9.35, not including the impact of share buybacks, as revenue is expected to rise 20-22% to a range of 7, 5 to 7.6 billion dollars. Along the way, the brand plans to add 70 new stores.
“Looking at our annual results, I’m particularly proud that we’ve passed the $6 billion annual revenue milestone, and we’ve achieved that despite the continued challenges in the macro environment, and we’ve seen our momentum continue and accelerate as we enter the first quarter,” McDonald said.
The company is not immune to pricing pressures, and McDonald’s said it would raise prices slightly on around 10% of its styles, but would be careful to stay competitive.
And much of the brand’s assortment can survive short-term logistical problems.
“Our non-seasonal core product represents a significant percentage of our inventory, approximately 45%, which carries minimal shrinkage risk and positions us well to meet current and future customer demand,” McDonald said.
Looking ahead, he pointed to the brand’s multi-year partnership with the Canadian Olympic Committee, footwear launch and international as areas to watch this year.
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