Lululemon saw its stock fall on Thursday (Dec. 9) after its Q3 earnings as the company cut its sales expectations for its Mirror at-home fitness device.
The company’s shares were reportedly falling over 2% in after hours and closed the day down 2.1%, per a CNBC report.
Lululemon said its earnings for the quarter were ahead of estimates, but that shopper demand over the holidays might have been pulled forward as they bought things earlier — and because of this, the Q4 outlook might be a bit lighter.
Management also was concerned about the ongoing supply chain issues, with have left several things out of stock including outerwear.
The Q3 net income was $187.8 million, a rise from a year ago when it was $143.6 million. Sales rose around 30% from a year earlier, according to the release.
The boost came from the Lululemon’s men’s business, which saw 44% growth since the past year, with sales in womenswear up 25%. Lululemon says it has plans to double the men’s division by 2023 — a project on which they’re running ahead of schedule.
The company has been pleased with its early holiday season performance, according to CEO Calvin McDonald.
“Our third quarter results demonstrate the ongoing strength of lululemon and the tremendous growth potential of the business in both the near- and long-term,” McDonald said in the earnings release. “We are pleased with our early holiday season performance and how the lululemon brand continues to resonate in markets around the world.
“We are energized by the exciting opportunities ahead, and I’m proud of our teams across the globe for their passion and agility — I want to thank everyone for delivering a strong quarter.”
In September, PYMNTS wrote that Lululemon saw a boost to its direct-to-consumer (D2C) revenue in the second quarter, with the earnings report saying that sector had seen revenue rise 8% to hit $597.4 million, with revenue being 41.2% of the total revenue.
D2C sales also doubled in 2020 for the company and were half of the company’s annual revenues.
Read more: D2C Revenue Continues to Buoy Lululemon
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