Lululemon, the renowned Canadian retailer, has seen its Q3 net revenue surge by 30 per cent to clock US $ 1.5 billion.
The operating income for the retailer rose by 26 per cent during the said quarter – and all this despite supply chain constraints.
The quarter also saw Lululemon’s direct-to-consumer revenue increase by 23 per cent – representing over 40 per cent of firm’s total revenue.
Calvin McDonald, CEO, Lululemon, said that despite previous manufacturing closures in Vietnam, retailer’s total inventory went up by 22 per cent in Q3, which was ahead of earlier forecast by Lululemon. Reportedly, all factories that produce for Lululemon have now opened.
Notably, the gross margin for the fourth quarter is expected to be flat compared to 2019, under pressure from a 450 basis point cost riseowing to air freight.
Meanwhile experts believe that Lululemon’s efforts to shun discounts have also helped it protect profits – which applied even to the Black Friday week.
Lululemon was founded in 1998 as a retailer of yoga pants and other yoga wear, and it soon expanded to also sell athleticwear, lifestyle apparel and fashion accessories.
