Lululemon ends year with 20% revenue jump, skips 2020 outlook
Mar 27, 2020
Lululemon Athletica Inc. was one retailer with good news on Thursday, as it reported fourth-quarter results that topped expectations, which lead to a 21 percent net revenue increase for full-year fiscal 2019.
The Vancouver, British Columbia-based company posted net revenue of $4 billion, for the fiscal year ended February 2, 2020. Total comparable sales were strong, up 17 percent, with comparable store sales increasing 9 percent, or 10 percent on a constant dollar basis, while direct-to-consumer net revenue increased 35 percent.
Likewise, fourth quarter revenue saw double-digit sales growth with net revenue up 20 percent reaching $1.4 billion. Total comparable sales were also up 20 percent, while comparable store sales increased 9 percent and direct-to-consumer net revenue increased 41 percent.
For the quarter, the company’s net income rose to $298 million, or $2.28 per share, from $218.5 million, or $1.65 per share, a year earlier.
"2019 was a strong year for lululemon, as our teams executed against our Power of Three growth plan. We are now navigating an extraordinary environment, which is currently impacting our business,” said Calvin McDonald, CEO.
“The strength of our brand and strong financial position will help us manage through the day-to-day, while continuing to effectively plan for and invest in our future.”
Despite the strong year, Lululemon is already feeling the impact of Covid-19, as it closed stores across the world over the last two months.
In February, it temporarily closed all of its retail locations in mainland China, followed by closures in North America, Europe, Malaysia, and New Zealand this month. It also closed its distribution center in Sumner, WA.
While locations in China have since reopened with the exception of one store front, their other stores across the globe remain closed.
Due to the impact that Covid-19 is having across the globe, the athleisure company said it would not provide a fiscal 2020 outlook at this time.
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