Lululemon Changes Lifestyle And No Longer Calls Itself "Yoga Clothing Brand".

According to the world clothing shoes and hats net, east end of August 31st,

The second quarter results were released after the launch.

The net increase of 12.8% over the same period allowed the Canadian movement.

Brand share price rose 8%.

Net income of US $581 million, an increase of 12.8% over the same period last year.

Gross profit margin reached 51.2%, an increase of about 0.8 percentage points in the same period.

Earnings per share were 39 cents, higher than analysts' expectations of 35 cents.

Therefore, the optimistic lululemon has increased its annual revenue forecast from 25.5-25.8 billion to 25.5-26 billion.

"The two quarter growth has made us take a positive step in striving for us $4 billion annual revenue in 2020," CEO Laurent Potdevin said in a statement.

Lululemon revenue growth stems from

Direct sales of stores and electricity suppliers.

Over the past year, store revenue grew by 7% over the same period, according to Reuters. Analysts expect growth of 4%.

The electricity supplier's performance is even more eye-catching.

Revenue reached 113 million U.S. dollars, an increase of 29% over the same period last year, compared with the 7% increase in the first quarter of this year. This is due to the increase of website traffic and the increase of conversion rate.

Pdwin tried to make lululemon more diversified in crowded markets.

He seeks to expand men's clothing business, international expansion and inject more technological innovations into products.

Men's clothing is undoubtedly the key to lululemon's success. Lululemon's plan is 2020, and this business amounts to 1 billion dollars.

"Men's clothing is our most unknown secret," pdwin said.

While men's clothing attacked in large numbers, lululemon took defensive posture in children's clothing business, and even completely withdrew from the offline children's clothing business.

In June this year, lululemon said it would reorganize its children's clothing brand Ivivva.

In August 20th, lululemon closed 47 of the 55 Ivivva stores, one of which turned into a lululemon brand store, shifting the focus of children's clothing business to the electricity supplier.

This is in line with the trend of lululemon developing more towards the main brand and the electricity supplier.

In terms of channel expansion, lululemon has also maintained its own "unhurried" rhythm.

By the end of June, lululemon had 366 direct outlets.

Since last June, 42 new stores have been opened, including 24 in the US and 5 in China.

In addition, Japan and Ireland are the latest markets for lululemon in the past year.

An interesting phenomenon is that the brand positioning of lululemon has also changed quietly.

In the performance report, lululemon no longer calls itself "Yoga inspired athletic apparel", instead of being a sports brand inspired by healthy lifestyle (healthy lifestyle inspired athletic apparel).

In other words, lululemon wants consumers to discard their stereotypes of "yoga clothing brands" and gain greater growth in running, training and other categories.

"Lululemon is a leader in active, conscious lifestyle brands.

Our performance reflects that consumers of global growth have responded to the unique position of lululemon, "pdwin said.

The net number of profit figures has declined in a big jump.

Lululemon's net profit in the two quarter was $48 million 700 thousand, down 9% from the same period last year, as sales and management costs rose, asset depreciation and the cost of $3 million 200 thousand for children's clothing restructuring.

Among them, sales and management costs increased the largest.

In the first quarter, the net profit of lululemon dropped by more than 30% compared to the previous year because of the rising cost of sales, management and reorganization.

Profitability is a huge challenge for lululemon, especially in the Chinese market.

People familiar with the matter once told lazy bear sports that the sales situation of 5 stores in China is fairly good, but because of the huge labor cost, whether these stores can make profits is still a question mark.

After all, lululemon relies heavily on the link between salespeople and local communities in the expansion of emerging markets.

"The two quarter performance has been partly influenced by community activities, including linking consumers, live yoga classes and sponsorship of running events," padwin said in a conference call.

In the two quarter of June, lululemon launched the first global brand activity, "This Is Yoga" (this is yoga), which tells 7 real stories from 7 grassroots practitioners.

This is the first time that the brand has been established for 19 years.

In China, this activity is in line with the "heart development China" under the line.

Recently, however, lululemon has lost two capable officers.

The executive vice president, Gina Warren and Scott Stump, will leave. The former is responsible for the company culture and human resources department, while the latter focuses on brand and community building.

"We have a strong and expanding team in the course of business growth and progress, but the brand itself is stronger than any of us," he said.

Looking back over the first half of the fiscal year, lululemon's share price is like roller coaster.

At the end of March this year, lululemon announced its latest performance and future prospects, saying that the first quarter performance will be weak, and sales and profit expectations for the new fiscal year will also be lower than the market analysis.

Affected by this, lululemon shares fell more than 23% on that day.

The share price of $50.76 has also hit its lowest level since December 2015, and is also the largest single day decline since December 2008.

At that time, lululemon blamed it on the color of the season's products, which did not meet the demand of consumers for spring fashion, which led to a decrease in physical outlets and online traffic.

More troubling is that many analysts believe that the overall slowdown in sports apparel industry is a major reason.

Lululemon is suffering from the impact of UA, Nike and other lower priced brands. Its competitors have launched a series of sports and leisure products.

However, after a series of adjustments, lululemon ushered in a good first quarter: revenue of 520 million US dollars, up nearly 5% compared with the same period last year, gross profit margin increased by nearly 1 percentage points, and the share price rose by more than 12% on that day.

After an excellent two quarter, lululemon also gave investors a reassurance: the trend of sportswear is not out of date. Lululemon has great potential as a lifestyle brand.

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