Online sales shaped up nicely for athletic apparel retailer Lululemon Athletica Inc. during its 2015 fiscal year.
Lululemon, No. 108 in the Internet Retailer 2015 Top 500 Guide, reported online sales of $401.5 million in fiscal 2015, which ended Jan. 31, up 25.0% from $321.2 million last year. Online sales accounted for 19.5% of total revenues, compared to 17.9% last year, gains the company attributed to improved website traffic and conversion rates.
Online sales growth was even stronger during Q4 2015. In its earnings report, Lululemon reported online sales of $146.3 million, up 28.0% from $114.3 million last year. Online sales accounted for 20.8% of total revenue during the quarter, compared to 19.0% last year.
Chief financial officer Stuart Haselden told analysts on the retailer’s Q4 2015 earnings call the company is testing a redesigned website internally with plans to launch it to consumers in the second quarter.
“We’re building new customer analytic capabilities that the company has never had that will enable us to better tailor, better craft our communication with guests in a sophisticated way that we just have never done,” he told analysts on the call, according to a transcript of the call from Seeking Alpha. “It will give us better understanding of our customer segments, how they’re performing, how they’re trending, what’s working, what’s not, so that we can just become a stronger, more customer-centric business.”
CEO Laurent Potdevin told analysts he anticipates online sales accounting for more than 25% of Lululemon’s overall revenues within the next four years.
“Our vision is to design and nurture a digital ecosystem that amplifies human experiences, relationships and connection,” he told analysts. “Digital is a critical platform for us to tap into the power of our collections, both online and offline, allowing us to continue engaging with our guests in an authentic and personalized way.”
For the fourth quarter ended Jan. 31, Lululemon reported:
- Net revenue of $704.3 million, up 16.9% from $602.5 million last year.
- A year-over-year comparable sales gain including online of 11% compared to an 8% gain last year.
- Net income of $117.4 million, up 4.9% I GET 5.9% from $110.9 million last year.
For fiscal 2015, Lululemon reported:
- Net revenue of $2.061 billion, up 14.7% from $1.797 billion last year.
- A year-over-year total comparable sales gain of 10% compared to a 3% gain last year.
- Net income of $266.0 million, up 11.3% from $239.0 million last year.