What's going on?
Lululemon reported better-than-expected quarterly earnings late on Wednesday, as the high-end athleisure brand works its ath off to get back into pre-pandemic shape.
What does this mean?
Lululemon’s ecommerce business had a great run last quarter, though that’s hardly a surprise given all the online shopping habits people have picked up over the last year. What’s really got people talking is the return of bricks-and-mortar shopping, with sales at Lululemon’s stores almost back to levels not seen since the beforetimes. Between the on and the offline, the company’s revenue climbed 61% compared to the same time last year (tweet this). And all those hard yards seem to be paying off: Lululemon’s on track to beat its 2023 revenue target by the end of this year.
Why should I care?
For markets: Don’t slow down.
Investors sent Lululemon’s shares up 13% following the update, but they might not want to put all their money into lycra just yet: the company has been dealing with supply delays since the pandemic’s last wave, and any new spikes could make it even more difficult to get sweatpants through the door. And while some of the company’s Asian factories are set to reopen later this month, local outbreaks and global shipping slowdowns can’t be ruled out just yet.
The bigger picture: Come fly with EasyJet.
At least all those Lululemonheads are finally able to head out on a much-needed yoga retreat: airlines have been making a comeback after a year languishing on tarmac. EasyJet in particular is reportedly set to raise $1.4 billion by selling more of its shares, which the UK-based budget airline is hoping will help it build up package holiday offerings and better compete with its rivals. One ticket to Bali, please.