1/8 Thread: $LULU FY 4Q'21 earnings call
LULU had a decent Q4. Topline grew ~24% vs guidance of mid-teens.
Overall, FY'21 revenue grew ~11% even though DTC doubled. Mirror also contributed $170 mn last year.
Key highlights from earnings call.
LULU had a decent Q4. Topline grew ~24% vs guidance of mid-teens.
Overall, FY'21 revenue grew ~11% even though DTC doubled. Mirror also contributed $170 mn last year.
Key highlights from earnings call.
2/8 In Q4, women's segment grew ~20%, still ahead of men's growth reversing the trend seen in the last few years.
Apparently men shop more in stores vs women, and management expects men's sales to pick up as stores start to operate in full capacity this year.
Apparently men shop more in stores vs women, and management expects men's sales to pick up as stores start to operate in full capacity this year.
3/8 LULU cited 1% market share gain in broader adult activeware market in 2020.
International revenue grew 31% in 2020 and estimate just 14% penetration in outside NA market. New EVP in International markets will lean into some key markets.
International revenue grew 31% in 2020 and estimate just 14% penetration in outside NA market. New EVP in International markets will lean into some key markets.
4/8 Mirror acquisition has seemed to fare well so far.
Mirror is seeing 2 users per household and avg member taking 6 different types of workout each month.
Expects Mirror's revenue to grow 50%-65% this year to reach $250-275 Mn.
Some key strategies here (see image).
Mirror is seeing 2 users per household and avg member taking 6 different types of workout each month.
Expects Mirror's revenue to grow 50%-65% this year to reach $250-275 Mn.
Some key strategies here (see image).
5/8 Despite Covid related uncertainties, 30 new stores were added in last year. Although gross margin was +60 bps YoY, last quarter saw higher markdown. Inventory level (+25% YoY) still seems somewhat elevated to me which may continue to pressure on GM.
6/8 Guidance for next year: $5.55-5.65 Bn (+27% at mid-point)
40-50 new stores (30-35 international) i.e. LDD sqft growth
expects ~50 bps pressure on GM and 50-100 bps deleverage on SG&A, primarily because of investment in Mirror. Capex $335-345 mn.
40-50 new stores (30-35 international) i.e. LDD sqft growth
expects ~50 bps pressure on GM and 50-100 bps deleverage on SG&A, primarily because of investment in Mirror. Capex $335-345 mn.
7/8 Found it a bit odd that management commented on consensus estimates quarter by quarter during the prepared remark. Not sure why this was necessary.
8/8 My deep dive on $LULU (no paywall): mbi-deepdives.com/lulu/
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