Sportswear manufacturer Lululemon (NASDAQ: LULU) published financial report for the second quarter 2021 of the year. Compared to the same period 2019 And 2020 of the year:
- revenue rose to 1,5 billion dollars, on 64 And 61%;
- operating profit increased to 291 million, on 73 And 134%;
- net profit increased to 208 million, on 66 And 140%.
Same as last quarter, financial results of Lululemon were better than analysts' expectations. The company also raised its revenue and profit targets for the third quarter and 2021 year. Lululemon shares rose by 14%, to 433 $.
Megan Frank, financial director: “We achieved success in the second quarter due to strong demand for our products, better performance in our stores and the development of e-commerce. COVID-19 still has disruptions in our supply chain, but we are happy to improve our forecasts".
Sales Lululemon in their own stores grew by 142% and accounted for slightly less than half of the total revenue - 0,7 billion dollars. Sales in North America increased by 63%, and in other countries - by 49%.
In addition to clothing, Lululemon sells smart Mirror devices for fitness at home. Last year, at the height of the pandemic, the company bought the startup of the same name for 500 million dollars.
Mirror is a mirror with a built-in display. The device allows you to train with a virtual trainer and track performance. The device is worth 1495 $. Additionally, you can subscribe to a monthly subscription for 39 $.
According to Lululemon, Mirror Q2 sales flat. The company also notes, that due to the high competition in the segment, you have to spend more on advertising and marketing. According to management, Mirror's sales 2021 year may amount to 250-275 million dollars.
According to the company, revenue in 2021 financial year will amount to $ 6.19-6.26 billion - about 40% more compared to last year.
