September 14, 2010, 2:36 PM

LuLuLemon’s direct sales take a big leap in Q2

Direct sales, largely led by e-commerce, grew 220%.

Allison Enright


Lead Photo

LuLuLemon Athletica Inc. is clicking with its core e-commerce customers: affluent and exercise-minded young men and women.

 For the second quarter ended Aug. 1, LuLuLemon recorded:

  • Direct-to-consumer sales increased 220% to $9.6 million from $3 million in the prior year.
  • Total sales reached $152.2 million, a 55.6% increase from $97.7 million Q2 2009.
  • Comparable-store sales increased 31%.
  • Net income was $21.7 million, an increase of 136% from Q2 2009 net income of $9.2 million.

“We are just scratching the surface in e-commerce and will continue to add resources in order to push this channel to more than 10% of our sales in the near term,” CEO Christine Day told Wall Street analysts on the retailer’s second quarter earnings call.

While not providing any detail, the company will begin updating its e-commerce site after the holidays, says Deanne Schweitzer, head of strategy and e-commerce. “The work is being done right now on the new and improved guest experience, and you will see that in the next 12 to 18 months,” Schweitzer told analysts. “Small, little quick wins will be added in January.”

Internet Retailer calculates direct-to-consumer sales accounted for 6.3% of total revenue during Q2, compared with 3.1% in the prior year.

 For its fiscal year-to-date financials, LuLuLemon also reported:

  • $18.8 million in direct-to-consumer sales, a 382% increase from $3.9 million in the same period a year ago.
  • $290.5 million in total sales, a 62% increase from $179.4 million in the first two quarters of 2009.
  • Comparable-store sales increased 33% during the first two quarters of 2010.
  • Year-to-date net income reached $41.3 million, up 161.4% from $15.8 million in the first two quarters of 2009.

“Our direct-to-consumer channel, which includes e-commerce, is an increasingly substantial part of our business,” the retailer says.

 Internet Retailer calculates direct-to-consumer sales accounted for 6.5% of total revenue during the first two quarters compared with 2.2% in the prior year.

 LuLuLemon Athletica is No. 398 in Internet Retailer’s Top 500 Guide.


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