Even as Lululemon reported hovering gross sales on Wednesday and forecast a sturdy vacation season, the athleisure firm sounded a observe of warning due to pandemic-related manufacturing facility shutdowns in Vietnam, echoing issues concerning the international provide chain voiced by many attire retailers in current weeks.
“A third of our global sourcing does come from Vietnam so we are definitely in the market,” Calvin McDonald, Lululemon’s chief government, mentioned in an interview. “We are encouraged with the recent news of a phased opening in South Vietnam but we continue to work with our partners, shift, and if necessary, leverage airfreight and other ways to get our fall and winter goods in.”
He added that even whereas the corporate’s steerage known as for sturdy gross sales and revenue for the rest of this yr, “we could have stretched and achieved even more,” with out the availability chain disruptions.
Lululemon has been considered one of few attire retailers to thrive throughout the pandemic. Customers flocked to its expensive athleisure and train clothes whereas caught at dwelling, and the corporate made inroads in digital health with final yr’s acquisition of Mirror, a wall-mounted system for streaming exercises. Mr. McDonald mentioned that Lululemon, which has greater than 500 shops globally, would have 200 shop-in-shops that includes Mirror in North America by Black Friday.
The firm mentioned on Wednesday that its web income surged 61 p.c to $1.5 billion within the second quarter as many purchasers returned to in-store buying. Its web revenue rose to $208 million from $86.eight million in the identical interval final yr.
Lululemon is anticipating one other growth yr regardless of the availability chain woes and forecast that its annual web gross sales can be within the vary of $6.19 billion to $6.26 billion. The firm posted $four.four billion in annual gross sales for the yr ended Jan. 31, up from $three.98 billion the earlier yr. Its web revenue declined to $589 million final yr from $646 million within the prior interval.