Calvin McDonald, CEO of Lululemon Athletica, said in an appearance on CNBC Tuesday that he did not expect the company’s sales momentum to slow with the introduction of Covid-19 vaccines
“We’re not seeing a dramatic impact in reducing the momentum in business … there are many growth drivers in the market,” he told Jim Cramer in a Mad Money interview. “I think there are some permanent ones [pandemic] Turning points about the guests. “
Like many other companies, Lululemon saw its digital sales grow exponentially as a result of the coronavirus pandemic. Lululemon saw 94% growth in this category in its third quarter that ended Nov. 1 as consumers spent more online.
The sportswear retailer’s sales were also driven by consumers who wanted to be active in health and wellness in addition to growing interest in comfort clothing, McDonald said.
“These are all drivers who will keep moving forward after the pandemic,” he said. “Combine that with the momentum we have in the early stages of our growth and innovation. I don’t see any real material impact slowing our business down.”
Lululemon reported sales of more than $ 2.67 billion in its three fiscal quarters from early February to early November. While physical store revenue declined more than 36% year-over-year during this period, revenue direct to consumers more than doubled over this nine-month period.
Between the three quarters, Lululemon’s direct customer business reported revenue of $ 1.56 billion, up from $ 674 million in the same period in 2019, offsetting stationary losses.
In the U.S., the sports market could reach $ 105.1 billion in sales in 2020, based on data from Euromonitor International and Coresight. That number is a 9% decrease from 2019, but companies forecast the market to grow about 6.5% annually through 2023.
Innovation, omni-guest experiences and market expansion form Lululemon’s growth strategy. The company’s goal is to double its men’s business, double its digital sales, and quadruple its international business, McDonald said.
“We’re early in our growth over all of these levers so we’re very excited about the future,” he said.
Lululemon’s shares rose 1.05% on Tuesday to close at $ 356.07. The stock is up 53.70% since the start of the year.