Lululemon soars to record high after delivering one of strongest years ever

first_imgLululemon soars to record high after delivering one of ‘strongest years ever’ Wall Street analysts raise their price targets after blockbuster fourth quarter Facebook Lululemon Athletica Inc.’s ongoing evolution — its push into men’s wear, work wear, underwear and self-care — along with investments in e-commerce, product innovation and global expansion, led to one of its “strongest years ever,” the Vancouver-based retailer said Wednesday.Shares in the yoga-wear specialists soared 20 per cent to a record high in early trade Thursday and several Wall Street analysts raised their price targets for the company after the blockbuster fourth quarter.The company said net revenue for the fourth quarter, aided by strong holiday sales, hit US$1.2 billion, a 26-per-cent increase compared to the previous year.Total revenue for fiscal 2018 was US$3.3 billion — not far off its goal of US$4 billion in revenue by 2020.The company achieved three other goals for 2020 in 2018, including reaching an e-commerce penetration rate of 26 per cent.Lululemon also announced that it is opening e-commerce markets in France, Japan and Germany and plans to roll out its “order online, pick up in store” program across the U.S. by the winter holidays this year.What Lululemon has is armies of fans Recommended For YouBypassing parliament on no-deal Brexit would be unlawful, says campaignerSaudi market strong on Q2 results, Aldar boosts Abu DhabiMalaysia seizes $240 mln from Chinese state firm’s bank account -paperHuawei plans extensive layoffs at its U.S. operations – WSJHong Kong activists target mainland shoppers in latest wave of protests Comment Share this storyLululemon soars to record high after delivering one of ‘strongest years ever’ Tumblr Pinterest Google+ LinkedIn March 27, 20198:58 PM EDTLast UpdatedMarch 28, 201910:29 AM EDT Filed under News Retail & Marketing A Lululemon Athletica logo outside a store on Newbury Street in Boston.Steven Senne / THE ASSOCIATED PRESS Twittercenter_img More Jake Edmiston Email Reddit Globally, Lululemon signalled plans to open 25 to 30 stores outside North America. Lululemon’s stock price has roughly doubled in the last year, from US$78.71 on March 27, 2018, closing at US$146.80 on Wednesday before reaching more than US$160 in aftermarket trading as the company gave its earnings update.In recent months, analysts have seemed particularly curious about the company’s budding loyalty program, with one suggesting Wednesday that the program could act as a springboard into to the “lucrative” world of personal experiences, such as yoga and wellness retreats.“This is them laying the groundwork, I think, for that kind of move,” said Neil Saunders, managing director and retail analyst at GlobalData Retail.Lululemon first began testing the loyalty program in Edmonton, chief executive Calvin McDonald said in December. In that pilot program, members paid an annual fee of $128 in exchange for a free pair of shorts or pants, access to in-store classes and “curated events” as well as free “expedited shipping” on online orders. On Wednesday, McDonald released more details about the tests on the program, including an increase in pricing. Lululemon is now testing the program in Denver, at an annual fee of US$148, and receiving “wonderful take-up.”“It sort of confirmed our thinking, which is: There’s real value in the membership,” McDonald told analysts on a conference call Wednesday. “Our intent over the coming months is to select a few more markets and keep testing.”The program, for Saunders, appears to be a shift away from relying exclusively on products. Lululemon already offers a range of in-store classes and a series of bootcamp-style festivals called Sweatlife. McDonald has also signalled plans to court the running community, with a growing presence on fitness app Strava. Moving into health and wellness retreats, Saunders said, is a logical next step.“What Lululemon has is armies of fans,” he said. “If you look at many other retailers there’s no way they could move into those kind of sophisticated areas. A company like Dick’s Sporting Goods has no chance. Because it just doesn’t have the power of the brand.”With file from Reuters 0 Comments Join the conversation →last_img read more