This just in…Yoga-inspired clothing is extremely profitable! According to the latest announcement from Lululemon HQ, about $133 million worth in revenue profitable…in one quarter! Lulusquad just ended the first quarter of their fiscal year and much to the goal-setters’ delight, take home profits have managed to triple from a measly $6 mil this time last year to $19.6 million. That’s like 1,055,556 yoga classes, the really expensive $18 kind! (we did the math) How did they rake in so much? Is it more yogis? yoga moms? More camel toe? Head money counter Christine Day explains the ridiculousness:
1. Risk in stock!
“We believe we took the right amount of inventory risk to drive sales and used our rapid-response strategies to respond to incremental sales opportunities,” Day said.
Rabid lululemmings couldn’t get their sweaty paws on stretchy pants fast enough.
1a. Catering to skinny people!
“What we’ve really seen by the addition of the running line is that its really shifted our guest size profile down to the smaller sizes because we’re attracting a more athletic, fit guest, which is perfectly in line with our target and we’ve now adjusted a lot of our buys,” CEO Christine Day said on a conference call with investors Thursday.
(Fit people) x (exercising more) = $$
2. Internets! Not blatantly noted by lady Day, but opening an online store surely made a difference for all those millions of poor souls who live like hours from a Lululemon retail store.
With things going the way they are, Lulu lollies are on track for projected year revenues of between $620 million and $635 million. That’s like 6,888,888 yoga mats, the expensive Manduka kind! Oh and they’ll also be opening 30 new showrooms and 15 new stores this year too.
“As a growth company we will continue to make strategic investments to protect our iconic items such as our hoodie while scaling our infrastructure and people capacity,” Day said.
WTF. Executive-speak really drives us bonkers. In other words, our pals Chip and the lulus will be down-dogging into a big pile of money! Bless their hearts.