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lululemon projects healthy revenue ahead given store, e-commerce performance

Though spending went up, revenue growth was healthy for the Vancouver high-end yoga clothing brand.

September 11, 2015

While lululemon athletica beat revenue projections for the second quarter, its profit dipped due to spending tied to product-refresh efforts, international operations expansion and investment in its men’s apparel business.

As RetailCustomerExperience.com reported in early August, the pricey high-end active wear brand is launching its own brewery offering in Canada as a way to advance its status in the male fashion market, according to a CBCreport.

In May lululemon lost one of its most tenured leaders, with the resignation of Delaney Schweitzer, executive VP, global retail. Schweitzer began her career at lululemon in 2002 and helped grow the company from one store in Canada to currently more than 300 stores and showrooms globally.

Lululemon’s profit in Q2 dropped to $47.7 million, compared to a year ago’s $48.7 million, and shares then took a dip of 9 percent following the earnings news.

But CEO Laurent Potdevin noted there was robust performance in e-commerce and store channels in citing revenue growth of 16 percent, with revenue hitting $453 million, according to a New York Post report. Street watchers were expecting revenue of $445.8 million.

Potdevin is optimistic about the fiscal year, with the Vancouver yoga clothing brand projecting revenue to be between $2.03 billion to $2.06 billion.