// Lululemon surpassed $6 billion in annual revenue for the first time in in 2021
// Revenue grew by 40% in North America and increased 53% internationally
Sales soared in 2021 at Lululemon despite the challenging economic backdrop, with the business surpassing $6 billion (4.8bn) in annual revenue for the first time in the company’s history.
Net revenue at the Vancouver based athleisure company increased 23% year on year to £1.59bn in the fourth quarter, a 23% increase compared to the same period the year prior, behind growth across all business segments, while gross profit rose 22% to £914m.
The retailer posted sales that were largely in line with analyst expectations, and profit that was in excess of what was expected. Its board also authorized a US$1 billion share-buy-back program.
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Lululemon chief executive Calvin McDonald said 2021 was “another successful year”, adding: “We are proud that we passed the $6bn in annual revenue milestone for the first time. This was especially impressive given the challenging macro backdrop.”
Lululemon opened 22 new company-operated brick-and-mortar locations during the quarter, bringing its total to 574 stores worldwide.
For the 2022/23 financial year, Lululemon now expects net revenue to be in the range of £5.7bn to £5.79bn, representing growth between 20% and 22%.
Meghan Frank, chief financial officer, said: “Our results were driven by consistently strong performance across our products, channels, and regions. In addition, for both the fourth quarter and full year, we delivered revenue growth above our goals, despite the continued impact of Covid-19 and global supply chain issues. We are optimistic about our performance for the year ahead.”
Earlier this month, Lululemon stepped into footwear for the first time, launching The Blissfeel, a women’s running shoe.
Lululemon plans to release three additional lines of women’s footwear and the retailer plans to unveil men’s footwear next year. Lululemon’s foray into footwear is the company’s latest attempt at competing with top athletic brands like Adidas and Nike.