Strong demand for its vibrant yoga-inspired workout apparel lifted Lululemon Athletica Inc.’s third-quarter profits by 47.7 percent Thursday, although the brand noted it has experienced some “softness” early in the fourth quarter. Lululemon chief executive officer Christine Day wasn’t fazed, as the Vancouver-based apparel maker is in the process of stretching its reach to overseas markets, such as Hong Kong, Singapore, the U.K. and Europe. Currently, the company, which operates 201 stores, plans on opening its first unit in Hong Kong, as well as a host of showrooms across Europe and Asia over the next 24 months.RELATED CONTENT: Click Here for More Earnings Coverage >>“We have said previously that we have been spending the past several months doing a lot of behind-the-scenes work, and our international expansion is now entering a phase of more on-the-ground development,” Day said, adding that Lululemon already has e-commerce in the aforementioned markets. Although the brand has experienced “significant” e-commerce growth — in the third quarter, sales were up 89 percent to $14.5 million — it also saw some price resistance on newer technical product. As a result, Day said it had to bring the prices to a “more accessible level,” especially considering it is the holiday season. Typically, Lululemon’s activewear hovers between $50 and $200, with the majority of its most basic yoga pants retailing for just under $100. While that may seem steep for workout gear, those premium prices haven’t deterred the brand’s loyal customer base. The Vancouver-based company posted net income of $57.3 million, or 39 cents a diluted share for the period ended Oct. 28, compared with year-ago income of $38.8 million, or 27 cents a share. Net revenue for the quarter expanded 37.5 percent to $316.5 million from $230.2 million. Analysts anticipated earnings per share of 37 cents on sales of $305.3 million. Same-store sales during the quarter rose 18 percent, as pricing adjustments brought gross margin to 55.4 percent of sales versus margin of 55.8 percent a year earlier. Although Lululemon saw robust growth, it expects fourth-quarter earnings to total between 71 and 73 cents, lower than the 75-cent profit predicted by Wall Street. For the year, the brand estimated EPS to be in the $1.81 to $1.83 range on sales of between $1.36 billion and $1.37 billion. That’s slightly down from its previous projections of annual earnings of $1.76 to $1.81 a share on revenue of $1.35 billion to $1.36 billion. Analysts are looking for the brand to earn $1.82 cents a share on sales of $1.36 billion for the year.
"In order for Shudu to wear garments, she needs to be able to put them on, just like you would in the real world. You have to digitize the outfits," said Cameron-James Wilson on dressing 3-D model @shudu.gram for her WWD photoshoot. #wwdfashion ( 📸: @cjw.photo )
“Shudu is a digital supermodel, a very glamour and amazing woman. But she’s 3-D,” says Cameron-James Wilson, a fashion photographer and the creature of @shudu.gram. Here, Shudu wears @cushnieetochs for her debut fashion editorial. #wwdfashion (📷: @cjw.photo)
“It is the fierce female performances that came before me that made be able to clearly identify for myself what it was that I wanted to do, what kind of artist I wanted to be, what kind of films I wanted to make,” said @brielarson at the Women in Film Crystal + Lucy Awards. See more pictures from the event on WWD.com. #wwdeye (📷: Matt Baron)
“On a personal level, it’s my vision to create a really different idea with their look to be at the epitome of women’s fashion in South Korea – to create a new milestone,” said stylist @chochowon on dressing K-pop’s most fashionable girl group, @blackpinkofficial. WWD’s @mistywhitesidell sat down with Won ahead of the group’s new album release, “Square Up,” which is out today. Read the full interview on WWD.com. #wwdfashion #blackpink_squareup #blackpink
For @ralphlauren, 2018 is a reason to celebrate: It marks the brand’s 50th year in business. Last year’s chauffeured show in Bedford, NY featuring his vintage car collection may have seemed like the big celebration to show-goers, but they were wrong. The official celebration will be held on September 7 during #NYFW. Get all the details on WWD.com. #wwdfashion (📷: @giovanni_giannoni_photo)