Lululemon Thrives In Q3 Despite Tough Athleticwear Environment

The athletic apparel sector has been under plenty of stress in 2017, with sporting goods players taking a 3% sales hit in Q3. But the strong lululemon brand is keeping the retailer afloat, despite the many issues plaguing athleticwear. 

Lululemon reported a 14% increase in sales to $619 million in Q3, with same-store sales increasing 8%. Brick-and-mortar same-store sales jumped 2%, while direct-to-consumer sales leapt 26%. The company reported net income of $59 million and earnings per share of $0.43 for the quarter, down from $68 million due the expense of restructuring its ivivva kids operations.

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Is ‘Connected Fitness’ Generating Enough ROI For Under Armour?

Under Armour’s streak of 26 straight quarters with a 20% revenue increase snapped this week in a big way: the athleticwear brand saw only a 12% revenue growth rate in Q4.

The poor quarter inflicted significant damage on Under Armour’s 2017 outlook, with the company now expecting annual revenue to rise 11%-12%, to $5.4 billion. This forecast is a far cry from predictions made in October, when CEO Kevin Plank said he expected the brand to continue growing in the low 20% range throughout 2017 and 2018. To make matters worse, Plank now said he expects Under Armour’s operating income to fall by $100 million for 2017.

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