Just as we were promised, lululemon has saved Christmas! Not even the Recession-omics or black market knockoffs can keep these lulubirds down. While everyone from Best Buy to Wal-Mart is beating down your door with drastic price slashes this holiday season, team lulu just flashes their cheery grin and shrugs their little goalsetting shoulders, because markdowns are not part of the greatness, and apparently they can get away with it!
Here’s the stock market mumbo jumbo:
“During the quarter, profit spiked nearly 60% to $14.1 million, or 20 cents a share, compared with $8.8 million, or 13 cents, in the year-ago period. Analysts expected a profit of 19 cents a share.
Revenue jumped almost 30% to $112.9 million, while same-store sales gained 10%.”
This all without any big store discounts (there are some online sales, so we hear). Basically, lululemon’s still going Mach 1 on the great-o-meter! By the way, this is Q3 because their fiscal year doesn’t end til early ’10, but for right now they’re in the green and going for the gold. And guess what they can tribute most of it to? Keeping items in stock! Yes, everything is flying off the shelves so stinkin’ quickly that last year’s profits suffered from not replenishing stock fast enough. Ridiculous? Yeah, kinda.
“Last year, out-of-stock items, particularly small sizes, posed a problem,” she wrote. “This year, they’ve addressed this concern, however, with the increase in demand there are still stocks out in smaller sizes,” says analyst Jennifer Black.
And thank all that is great for that. Also a boon to profits was the expanded running line. Maybe next year they can sing the praises of the tween!
And so, once again this year, little lulu lemmings will arise Christmas morning, all doe-eyed and yoga-tailed to find happiness and status symbols waiting under the tree. Joy to the world!