Lululemon Beats Outlook and Shoots Profits +39 Percent
While they finalize the last preparations for their more than imminent landing in Spain, a market for which, within the same penetration strategy in the country, they put into operation throughout this last month of August an exclusive online sales platform, from Canadian multinational Lululemon Athletica, one of the new leading companies in the increasingly booming and dynamic sportswear sector, released its financial results for the second quarter of its current fiscal year 2022 late yesterday. Three-month period ended on July 31, which the company managed to complete above the forecasts that its management managed for this quarter, which consequently has already led the Canadian multinational to raise the perspectives that they handle facing the end of this same exercise.
Entering now to put in black on white the accounts of the sports multinational, Lululemon Athletica has completed this second quarter of the year generating total net sales worth 1,868 million dollars, about 1,873 million euros at current exchange rates. A turnover level that represents an increase of +28.83 percent compared to the 1,450 million dollars generated during the same period of 2021; as well as +107.1 percent compared to 902 million in 2020, and +111.5 percent compared to 883 million in 2019. A series of figures that come to value the marked trend to the rise that the company, in the face of wind and tide and disruptions such as those that have been generated from this coronavirus pandemic, has managed to continue throughout these years.
In response to this sharp upward growth in its turnover, in terms of profit, and despite having seen its operating and production costs also soar as a result of inflationary pressures, Lululemon closed the quarter posting a profit net worth 289.52 million dollars, about 290 million euros at current exchange rates. A figure that, for its part, represents an increase of +39.19 percent compared to the profit of 208 million that the company collected at the end of the same second quarter of 2021; as well as +233.55 percent compared to just 86.8 million profit in 2020, and +131.63 percent compared to the 124.99 million dollar profit in the same second quarter of 2019,
“The push on our business has continued in the second quarter, driven by a strong response from our customers to our product innovations, community activations, and omnichannel experience,” said Calvin McDonald, CEO. of Lululemon Athletica, throughout some statements made public by the sports multinational itself. In response, “I would like to thank our teams around the world for their continued dedication and enthusiasm for our brand, which is what has enabled us to generate this high level of performance.”
Increase in forecasts for the end of the year
Looking to the future, and starting from this solid base with which they have already managed to provide their accounts so far this year, in response to this extraordinary performance, with which the company has managed to beat the forecasts of an increase in sales of +26 percent, up to between 1,750 and 1,775 million dollars, which it managed for this second quarter, from Lululemon Athletica they have not found a better way out than having to update, upwards, their forecasts for the year. A year whose results they trust will allow them to get closer, and faster, to the objectives they contemplate as a result of the application of their strategic growth plan “Power of Three X2”. A sum of measures with which they maintain the aim of doubling their volume of income by 2026, compared to 2021, raising them from 6.
In line with what has been pointed out, for this third quarter of the year Lululemon expects to generate a net income of between 1,780 and 1,805 million dollars. While facing the end of the year, they trust to close 2022 with a total net income of between 7,865 and 7,940 million dollars. A range higher than the one between 7,610 and 7,710 million dollars that they estimated for this year at the end of the first quarter, and values all of them higher than the total income of 6,256.61 million dollars with which it closed its last full year of 2021.
“Looking forward, we are excited about our ability to successfully deliver on our ‘Power of ThreeX2’ growth plan and continued value creation for all of our shareholders,” adds McDonald, with some statements from which he leaves to value the ambitious objectives contemplated in this new strategic plan that the company presented at the end of last April. A roadmap, they point out from Lululemon, pursues “a duplication of the business” and which has as key pillars the commitment to “innovation in products, in the customer experience and in a strategy of expansion and growth in the brand, including a plan to double” his masculine offer.