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Lululemon Sales Bonanza Gains Steam as New CEO Takes the Reins
Lululemon Sales Bonanza Gains Steam as New CEO Takes the Reins
31 Aug 2018, 02:18 AM IST
(Bloomberg) -- Lululemon Athletica Inc. raised its full-year revenue and profit projections after once again beating sales forecasts in the second quarter. It’s a sign that Chief Executive Officer Calvin McDonald clearly has the wind at his back as he takes over.
Key Takeaways- The new forecasts replace estimates that analysts had described as conservative. They also bring the yogawear maker closer to its goal of $4 billion in revenue for 2020.
- The digital business is thriving. With a 47 percent percent jump in e-commerce sales in constant currency, the Vancouver-based company is cashing in on its revamped website and direct-marketing efforts. It’s planned a new distribution center in the Toronto region to better address orders from the east coast.
- Shares rose as much as 8.2 percent to $148.27 in late trading. They have gained 74 percent this year through Thursday’s close, reflecting investors’ confidence in the company’s plan to accelerate e-commerce revenue growth, attract more male shoppers and expand overseas.
- McDonald, a Canadian who most recently served as a top executive at makeup chain Sephora, joined the company earlier this month.
- Company says experiments with new store formats also helped boost brick-and-mortar sales.
Second-quarter results and outlook: |
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To contact the reporter on this story: Sandrine Rastello in Montreal at srastello@bloomberg.net
To contact the editors responsible for this story: Anne Riley Moffat at ariley17@bloomberg.net, Jonathan Roeder, Mark Schoifet
©2018 Bloomberg L.P.
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