Q 3 2021, Compared to Q3 2020
- Net revenue increased 30% to $1.5 billion.
- Net revenue increased 28% in North America, and increased 40% internationally.
- Total comparable sales increased 27%.
- Comparable store sales increased 32%.
- Direct to consumer net revenue increased 23% to $586.5 million.
- Direct to consumer net revenue represented 40.4% of total net revenue compared to 42.8% for the third quarter of 2020.
- Gross profit increased 32% to $829.4 million and gross margin increased 110 basis points to 57.2%.
- The Company opened 18 net new company-operated stores during the third quarter, ending with 552 stores.
“We continue to leverage and enhance our in-store and omni capabilities, including enhancing our mobile app to facilitate curbside pickup for guests, make our in-store handheld units more intuitive for our educators to help speed guests through transactions, and continue to offer our online digital educator service at no cost — providing a personal shopping experience for guests who can't make it into our stores,” said McDonald.
The company expects capital expenditures to be approximately $375-$385 million for 2021. The increase versus 2020 reflects boosted investment in the retailer’s supply chain, digital capabilities, new store openings and renovations, including Mirror shop-in-shops, other technology and general corporate infrastructure projects.
The retailer also raised its outlook for the year. For 2021, it expects net revenue to be in the range of $6.250 billion to $6.290 billion. Diluted earnings per share are expected to be in the range of $7.38 to $7.45 for the year and adjusted diluted earnings per share are expected to be in the range of $7.69 to $7.76.
"Our teams continue to execute at a high level, which has enabled our strong Q3 performance and the upward revision to our guidance,” said CFO Meghan Frank in a statement. “We are pleased with these results given the ongoing, industry-wide supply chain issues we continue to navigate. While there are several large volume weeks ahead of us, we feel well positioned for a strong end to 2021."
"Our third quarter results demonstrate the ongoing strength of lululemon and the tremendous growth potential of the business in both the near- and long-term,” said McDonald in a statement. “We are pleased with our early holiday season performance and how the lululemon brand continues to resonate in markets around the world.”