Looking fresh
Lululemon shares were up 15% in after-hours trading yesterday on the back of a strong earnings report that saw Q4 revenue hit $2.8 billion and yearly sales rise 30% compared to 2021.
With yoga pants and comfortable athleisure wear at its core, Lululemon certainly benefitted from the home workout and general fitness boom brought about by the pandemic — since 2019 the apparel company’s seen sales more than double, helping to bolster its direct-to-consumer division as customers moved increasingly online.
Stretching
In that time, Lululemon’s expanded its exercise empire further, slipping into the shoe business, acquiring the at-home fitness product Mirror in 2020, and even introducing a new subscription model offering exclusive access to items, fitness classes, and an app later in the year. Stretching out in general seems to come pretty naturally to the company.
Revenues at the fitness-focused firm have increased 37% on average each year since 2004, though the last few years have seen the company’s sales figures seriously bulk up. In 2019, Lululemon made just shy of $4 billion in sales, which had risen to $6.3 billion only two years later and now sits at a very healthy-looking $8.1 billion for 2022.
The company’s financials elsewhere are in good shape as well — thanks to slick marketing and an almost cult-like customer base, Lululemon squeezes out some pretty juicy operating profit margins compared to huge competitors like Nike and Adidas.
