Lululemon Net Sales Growth In The Third Quarter

Canadian Yoga wear chain Lululemon Athletica third quarter earnings showed less than expected earnings, so that the annual sales forecast was cut, the third quarter profit fell to 6 billion 50 million dollars, net sales increased 10%.

During the period (2013), the surplus was $6610 million, or $0.45 per share, and the net surplus in the third quarter of this (2014) year ended November 2nd was US $60 million 500 thousand, or US $0.42 per share.

Prior to analysts, the average forecast was $0.38 per share.

Under the fixed dollar base, sales fell by 3%, net profit from 420 million yuan (2013) to 420 million, an increase of 10%.

Direct sales to consumers increased by 18.4%.

Laurent Potdevin, executive director, said: "the key to promoting our driving force is brand, customer experience and products. I am pleased that the third quarter performance has shown sustained progress.

"I believe that we are strong.

Together with investment strategies in core business areas, it has made a positive impact and will further leave a strong trajectory in global economic growth.

Up to now (2014) February

The forecast is raised from US $$1.74-1.78 per share to US $$1.72-1.77 per share.

The profit and loss forecast has been reduced from $17.8-$18 billion US dollars to 17.7-$17.8 billion US dollars.

The estimated impact is about $15 million, including the delays in the West Coast ports, the lower Canadian dollar exchange rate and the delay in opening new stores.

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As a sports brand, Puma began holding by Kai Yun group in 2007, and its current shareholding ratio is 86%.

Recently, there has been news that Kai Yun group is looking for new buyers for Puma. Of course, the news is not groundless. To observe the performance data of Kai Yun group in recent years, it can be found that not only the luxury market is not satisfactory, but also the sports brand Puma is dragging the group back leg.

Starting from 2013, the net income of Kai Yun group showed a marked decline. In the first quarter of 2013, Puma net profit dropped by 32% to 50 million euros over the same period in 2012, and sales fell 2.3% to 782 million euros compared with the same period last year. Under this influence, the rating agency Moodie lowered its annual sales and profit expectations, and the number of global stores decreased from 590 to 540.

In the two quarter of this year, thanks to the effect and promotion of the world cup, Puma net profit fell by 76.2%, less than the expected decline.

Of course, for the luxury group with many top brands, Gucci and Puma also appear to be in the same crisis. Kai Yun group seems to have decided to focus on supporting Gucci, while Puma has ushered in another Savior, Rihanna (Rihanna).

Puma's motion genes and the top luxury routes of Kai Yun group have never been favored by the outside world, and in fact, Puma is finally unable to escape the fate of being resale.

The Puma invited Rihanna to be the creative director of women's clothing. So it seems that Puma still wants to combine sports and fashion closely. But can this woman from Barbados really save Puma? Look at the Air jordan on her feet, and she can not help but throw pity on Puma.

As we all know, Rihanna is Nike powder, making her do Puma endorsement is no longer attractive, but also asked her to become a brand creative director, and how much design and concept gap between them.

Moreover, the singer's cross border creative director has a precedent. The combination of blackberry and Alicia Keys is a warning.

Although not optimistic, but Rihanna's accession still injected a lot of vitality for Puma, at least a large number of magnesium lamps have been cast to Puma.

Holding Puma, Kai Yun group wants to make it more high-end and more fashionable. However, in the brand management, it is difficult to keep up with the opening of the cloud in the brand management. The strategy of Puma terminal marketing and opening up business has failed to keep pace with the pace of product changes. In addition, Nike and Adidas and other strong competitors in the past, whether it is sales scale or marketing investment, Puma and their roots are not on a scale. Therefore, Puma is gradually marginalized and niche in the competition of sports brand, and it is even harder to attract consumers of 16~25.

In terms of gross margin, sportswear is much lower than luxury goods, and the attribution of both to the same company will naturally drag down the overall valuation of the group.

In order to save Puma performance, Kai Yun group has made a lot of efforts, but whether it is to rebuild or change the brand slogan, still can not reverse the decline.

Thankfully, with the help of the world cup, players like Mario Balotelli, Cesc Fabregas and Sergio Aguero have made a great fire on Puma PUMA Tricks. Now the baton of saving Puma has passed to Rihanna. No matter what the future fate is, Puma still has to make unremitting efforts to turn it around.