Growth in demand for comfortable clothing has increased due to the pandemic and sportswear retailers like Lululemon experiencing an uptick amid a general crisis.
Lululemon reported $1.1 billion in sales in the third fiscal quarter of 2020. That's a 22% increase over last year. In North America alone, net revenue was up 19% from the previous year.
Like other manufacturers of comfortable sportswear, the retailer was in a winning position during the pandemic. Staying home because of the quarantine, shoppers pay more attention to comfort clothing, buying it in much higher volumes than last year. Sportswear has become a must-buy item, while office suits, blouses, and dresses have become almost unnecessary.
An essential factor in the growth of Lululemon sales was the attention is paid to the development of e-commerce. The significant increase was demonstrated through direct sales to consumers, but only through the brand's stores and website, without intermediaries' involvement. Revenue from direct sales grew 94%, accounting for 42.8% of total revenue, up from 26.9% a year earlier.
The company does not yet offer a forecast for 2020 results, citing the uncertainty of the situation. Because of the increased number of diseases and the introduction of restrictive measures, Lululemon was forced to re-close many stores. Thus, it is not yet possible to assess what the annual results of the company will be.
Photo credit: depositphotos.com.