D2C Revenue Continues to Buoy Lululemon

Lululemon saw an increase in direct-to-consumer (D2C) net revenue in the second quarter of the year, the athleisure leader reported Thursday (Sept. 9).

According to the company’s Q2 earnings report, D2C net revenue rose 8% to $597.4 million. D2C net revenue accounted for 41.2% of total net revenue, compared to 61.4% in 2020’s second quarter.

Last year, D2C sales doubled for Lululemon, making up half of the company’s annual revenues.

Read more: Lululemon D2C Sales Double, Account for Half of 2020 Revenues

“Our performance in Q2 was driven by a strong response to our product offering, improving productivity in our stores, and sustained strength in e-commerce,” said Meghan Frank, the company’s chief financial officer.

Frank noted that the company continues to navigate the COVID-19 environment, including supply chain headwinds, but Lululemon raised its full-year revenue guidance to approximately $6.2 billion, up from previous projections of $5.8 billion to $5.9 billion.

Lululemon opened 11 new stores during the second quarter of 2021, bringing the company’s total of brick-and-mortar locations to 534. Earlier this year, the apparel maker had said it hoped to add 40 to 50 new locations during 2021.

Overall, the company’s net revenue increased 61% to $1.5 billion. Net revenues for company-owned stores rose 142% to $695.1 million. Net revenues rose 63% for North America, and 49% internationally.

Also read: Increased Athletic Competition Has Lululemon Sweating

As PYMNTS reported last month, the pandemic led many brands to step up their game when it comes to athletic apparel, thus putting pressure on Lululemon.

For example, there’s Gap’s Athleta and its new wellness platform, launched in the wake of Lululemon’s acquisition of the in-home fitness company Mirror. Victoria’s Secret has also started selling athleticwear, while the British brand Sweaty Betty is planning to open its own chain of brick-and-mortar shops in the U.S.