Athleisure retailer Lululemon Athletica reported earnings on Thursday with a positive look at its eCommerce expansion.
The company’s results for the third quarter 2022 were mainly positive thanks to increased web traffic and in-store purchases at the start of the holiday shopping season.
“Black Friday was the biggest day ever in our history in terms of revenue and traffic driven by our results in both North America and around the world, with guests responding well to the innovation we offer across our product assortment,” said CEO Calvin McDonald on Thursday night’s (Dec. 8) earnings call.
This is evidenced by the company’s earnings results, which indicated a net revenue increase of 28% to $1.9 billion in the third quarter of 2022, and by region, revenue increased 26% in North America and 41% internationally.
Lululemon CFO Meghan Frank attributed this upward revenue trend to an increasing amount of consumers looking to get back into fitness.
“In stores, traffic increased nearly 25%. And in our digital business, traffic to our e-commerce sites and apps globally increased nearly 50%. This speaks to the strength of our omni operating model as we engage with our guests and we have most convenient to them,” said Frank.
The company also took a step toward reaching consumers at home in the last quarter to maintain its customer base even when not shopping.
On Oct. 5, Lululemon launched a new in-home fitness platform, Lululemon Studio. The service allows members to stream weekly classes and sign up for discounted classes in person at brick-and-mortar locations. The platform builds on classes and other services available with a Mirror home gym subscription.
By maintaining its customers in every facet of athleisure and fitness activity, Lululemon is setting its brand up for continued success into the next quarter and beyond.
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