Sportswear retailer Lululemon releases Q3 2021 financial report. The company has lowered its forecast for sales of smart mirrors Mirror, after which the shares fell by 1%, to 412 $.
Compared to the same quarter last year:
- revenue — 1.5 billion dollars (+30%);
- operating profit - 258 million (+26%);
- net profit - 188 million (+31%).
How much has sales increased?:
- in North America - on 28%;
- in other countries - on 40%;
- comparable - on 27%.
Revenue and net income were better than expected. Separately, Lululemon noted the high demand for menswear, sales of which increased by 44%. The company stated, what will fulfill the plan to double sales of menswear by the beginning of 2023. Sales of women's clothing - the retailer's main business - grew by 25%.
According to the company, Online thanksgiving sales were the biggest ever. Digital sales accounted for 40% all quarterly revenue.
According to Lululemon, sales in the fourth quarter and at the end of the year will be 2,2 and $ 6.3 billion. Analysts expected the same.
But the company has halved the forecast for annual sales of the Mirror smart mirror, from 250 to 125 million dollars. Mirror is a smart home fitness device, which looks like a mirror with a built-in display. A year ago, in the midst of quarantine, Lululemon buys Mirror for $500 million.
Lululemon changed its forecast for two reasons. The first is high competition in the market.. Second - all consumers returned to the gyms. Peloton faced the same problem. A month ago, the company announced a large quarterly loss and cut its annual sales forecast from 5,4 up to $ 4.4 billion. Since the beginning of November, Peloton shares have already dropped by 56%.
And since the beginning of 2021, Lululemon shares have risen in price by 16%. Index S&P 500 added over the same period 26%.
