VANCOUVER — Lululemon Athletica Inc. beat expectations as its net profit increased 14 per cent to US$143.6 million in the third quarter on higher revenues.
The Vancouver-based clothing retailer, which reports in U.S. dollars, earned $1.10 per diluted share for the three months ended Nov. 1, up from 96 cents per share or $126 million a year earlier.
Adjusted profits rose 20 per cent to $151.3 million or $1.16 per share, compared with $126 million or 96 cents per share in the third quarter of 2019.
Revenues increased 22 per cent to $1.1 billion from $916.1 million with revenues growing 19 per cent in North America and 45 per cent internationally.
Comparable sales for stores open at least a year — a key retail metric — increased 19 per cent in the quarter.
Lululemon was expected to earn 88 cents per share in adjusted profits on $1.02 billion of revenues, according to financial data firm Refinitiv.
“Our performance this quarter was driven by strong omni momentum, with notable strength in conversion and increased traffic to our e-commerce sites,” stated CEO Calvin McDonald.
“Our product innovations, investments in the e-commerce business, and strategic acquisition of Mirror position us well to serve our guests as their needs evolve across both physical and digital experiences.”
The company opened nine new company-operated stores during the quarter, ending with 515 stores.
Lululemon said it isn’t providing detailed financial guidance for fiscal 2020 at this time because of rapid developments resulting from the impact of COVID-19.
This report by The Canadian Press was first published Dec. 10. 2020.
The Canadian Press