This week saw LuluLemon shares jump in after-hours trading on Thursday following its quarterly earnings report that bucked broader retail pressures and analysts expectations. The Canadian makers of athletic gear, well known for their yoga pants said that revenue for the quarter ending July 30 went up by13% to $581 million whilst earnings per share came in at 39 cents when adjusted to exclude certain special items. Analysts had been broadly expecting sales of $567 million and earnings per share at 35 cents.
Laurent Potdevin, CEO, Lululemon, commented: “Our performance reflects the growing global consumer response to Lululemon’s unique position as the leading brand that defines an active, mindful lifestyle. Through continuing to deliver category-defining product innovation, we are creating experiences that our guests, both existing and new, desire. This strong brand momentum reinforces my confidence in our long-term strategy.”
Mr. Potdevin added: “The acceleration that we have seen across the business in the second quarter enables us to take another positive step on our path towards achieving $4 billion in revenue by 2020. Finally, I would also like to express my gratitude for the constant energy and determination of our teams and ambassadors, who powerfully bring our brand to life.”
A spokesperson from analysts D.M Research, a leading group of analysts said:
“Lululemon’s three-pronged strategy to stimulating top-line growth appears to be intact and working well. During the earnings call, management credited it as being the key driver behind the quarter’s strong results. On the international front, Asia was up an astounding +70% YoY on the back of a robust China business (up in the triple digits) that will see six new stores open in the back half of FY 2017.”
Board Level Changes At Lululemon
Changes have also been afoot at board level at Lululemon. The company have announced that they have appointed Tricia Patrick to its Board with immediate effect. Patrick joins from Advent International, the global private equity firm where she was managing director. Here she focused on buyouts and growth equity investments in the retail, consumer and leisure sectors. She has an AB in Biochemical Sciences from Harvard College and an MBA from Harvard Business School.
“We are excited to add Tricia Patrick to the Board,” said Laurent Potdevin, Chief Executive Officer of Lululemon. “Her global experience across consumer sectors will bring further insight and operational expertise to Lululemon at a time of significant growth for the Company.”
Lululemon Athletica is an athletic apparel company for the yoga, running and general training sectors. Founded by Chip Wilson in 1998, it has 354 stores across North America, Oceania and Europe. It is headquartered in Vancouver, British Columbia, Canada.