Lululemon Athletica is seeing a resurgence as many shoppers continue to pursue their fitness goals despite the pandemic.
The company, which operates a big store in Burnaby’s Metropolis at Metrotown, released strong third quarter financial results after markets closed December 9.
The company's profit, or net income, rose to US$187.8 million in the three months ended October 31, up from US$143.6 million in the same quarter a year ago.
On an adjusted basis, that translated into US$1.62 per share, which was more than the US$1.41 per share that analysts, in a Refinitiv survey, had expected.
Quarterly revenue was US$1.45 billion, compared to nearly US$1,12 in the same quarter a year ago – a 29.8% jump. Analysts had expected revenue to be US$1.41 billion in the quarter.
The company also projected that net revenue in its fourth quarter will be between US$2.125 billion and $2.165 billion, which is largely in line with what analysts expected.
The company's share price initially rose after hours, but then retreated to be down by more than 2%, during a conference call with analysts that started at 2 p.m. Pacific Time.
That decline may have been because the company slashed its forecast for 2021 revenue from its Mirror division to be between US$125 million and US$130 million, down from US$250 million to US$275 million. This puts Mirror as being responsible for little more than 2% of Lululemon revenue.
Lululemon is projecting its fiscal 2021 revenue will be between US$6.250 billion and $6.290 billion.
In July, 2020, Vancouver-based Lululemon spent US$500 million to buy Mirror – a New-York-based, in-home fitness company.
Mirror’s marquee product is a device that appears to be a standard mirror, unless it is turned on.
Users activate their Mirror to enjoy augmented reality. A fitness instructor could appear – wearing Lululemon clothing, and ready to guide the user through a workout.
- With reporting by Glen Korstrom, Business in Vancouver