At the same time as Lululemon reported hovering gross sales on Wednesday and forecast a strong vacation season, the athleisure firm sounded a word of warning due to pandemic-related manufacturing facility shutdowns in Vietnam, echoing considerations in regards to the world provide chain voiced by many attire retailers in current weeks.
“A 3rd of our world sourcing does come from Vietnam so we’re positively out there,” Calvin McDonald, Lululemon’s chief government, stated in an interview. “We’re inspired with the current information of a phased opening in South Vietnam however we proceed to work with our companions, shift, and if essential, leverage airfreight and different methods to get our fall and winter items 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 might have stretched and achieved much more,” with out the provision chain disruptions.
Lululemon has been certainly one of few attire retailers to thrive in the course of the pandemic. Clients flocked to its expensive athleisure and train clothes whereas caught at house, and the corporate made inroads in digital health with final yr’s acquisition of Mirror, a wall-mounted machine for streaming exercises. Mr. McDonald stated 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 corporate stated on Wednesday that its web income surged 61 % to $1.5 billion within the second quarter as many purchasers returned to in-store buying. Its web revenue rose to $208 million from $86.8 million in the identical interval final yr.
Lululemon is anticipating one other growth yr regardless of the provision chain woes and forecast that its annual web gross sales will probably be within the vary of $6.19 billion to $6.26 billion. The corporate posted $4.4 billion in annual gross sales for the yr ended Jan. 31, up from $3.98 billion the earlier yr. Its web revenue declined to $589 million final yr from $646 million within the prior interval.
https://www.nytimes.com/2021/09/08/enterprise/lululemon-supply-chain.html
