Lululemon Single Quarter Revenue Breaking $1 Billion, China'S Online Sales Rose 140%

Strong holiday season sales helped Lululemon achieve its quarterly revenue target of $1 billion in advance.

Beijing time March 28th, the Canadian sports brand released its fourth quarter financial report in fiscal 2018.

In the three months ended February 3, 2019, global revenue grew 26% to $1 billion 170 million over the same period, exceeding analysts' expectations of $1 billion 150 million.

As a key indicator of retail business performance, same store sales for at least 12 months increased by 16% over the same period last year.

In the fourth quarter, net profit reached US $219 million, or 1.65 US dollars per share, which was also widely expected by analysts who exceeded $1.74.

Lululemon chief operating officer Stuart Haselden (StuartHaselden) said that the company's operating profit margin reached 21.5% during the period, two years ahead of schedule.

In the 2018 fiscal year, the company's revenue increased by 24% to $3 billion 290 million, the annual net profit was $484 million, and the electricity supplier revenue increased by 46%.

Calvin MacDonald, chief executive of the company, said, "Lululemon has achieved the strongest performance in the history of the company, which is the result of the improvement of the overall business strength." CalvinMcDonald

We will seize many opportunities all over the world.

In addition, chief operating officer Stuart Hazelden (Stuart Haselden) mentioned in the earnings conference that China's electricity supplier sales were particularly strong, and the growth rate in the fourth quarter was more than 140%.

In March 18th, Lululemon announced that the brand China official website had been reopened after shutting down and refurbished, showing a better visual effect and richer content for consumers browsing at the computer side.

At the same time, the brand store and the official flagship store are fully synchronized.

During the fourth quarter, Lululemon harvested the strongest holiday season sales in nearly 6 years, prompting sales in the fourth quarter to account for more than 1/3 of total annual sales.

In order to celebrate the lunar new year, in January this year, the brand worked with Chinese actor Xin Zhilei to launch the Asian special products.

Calvin MacDonald, chief executive of the company, said: "during the whole holiday season, the company's business momentum has been strong, reflecting the recognition of products and our close ties with global customers."

Lululemon, started from women's fitness apparel, has been making great efforts in the male market in recent years to cope with the fierce competition environment.

According to the latest financial results, CEO Calvin MacDonald said that the expansion of men's clothing is the biggest growth area of the brand in the future.

In early March of this year, Lululemon announced the signing of the fifty-second Super Bowl MVP winner Nick Foles, which became the first male spokesperson of the brand.

As the next key business of Lululemon, the male product line aims to achieve sales of US $1 billion in 2020, accounting for 25% of the group's total target revenue of US $4 billion.

At present, this proportion is slightly higher than 20%.

Stuart Hazelden, chief operating officer, said, "the scale of Lululemon's male business will be as great as that of women."

In addition, the Canadian brand product line has extended from yoga equipment to outdoor, running and life categories, and even into the field of body care, providing antiperspirants and moisturizing cream products.

The concern is that in April 24th, Lululemon will hold investor day activities. It is expected to announce development strategies in the coming years, including the company's products and overseas expansion layout.

With the first sale of $3 billion in 2018, the 20 year old sports brand is one step closer to the goal of "selling $4 billion in 2020".

Analysts believe that the company will achieve this goal ahead of schedule.

After the release of the earnings report, Lululemon shares surged 10.13% to 162.40 dollars in the day after trading.

At the same time, Lululemon also announced a $500 million stock buyback plan.

So far in 2019, the company's share price has risen by 21%, and its share price has risen by 78% in 2018.