Image: Lululemon earnings infographic, Dec. 10, 2020. Source: Lululemon.
(Reuters) -Lululemon Athletica Inc beat quarterly revenue estimates on Thursday, as customers spent more on yoga pants and athleisure apparel for home workouts during the COVID-19 pandemic.
Robust demand for home workout wear has been the driving force behind the company’s growth as consumers prefer socially distant workouts due to the pandemic.
The company has also been ramping up marketing spending on Mirror, acquired earlier this year for $500 million, to capitalize on booming demand for online workout classes. The New York-based startup makes $1,500 mirror-like video monitors and offers monthly subscriptions for live workout classes.
Net revenue rose 22% to $1.12 billion in the third quarter ended Nov. 1, beating analysts’ average estimate of $1.02 billion, according to IBES data from Refinitiv.
The company reported a net income of $143.6 million, or $1.10 per share, in the third quarter, compared with $126 million, or 96 cents per share, a year earlier.
Reporting by Uday Sampath and Mehr Bedi in Bengaluru; Editing by Shinjini Ganguli