Even as Lululemon reported soaring sales on Wednesday and forecast a robust holiday season, the athleisure company sounded a note of caution because of pandemic-related factory shutdowns in Vietnam, echoing concerns about the global supply chain voiced by many apparel retailers in recent weeks.
â€œA third of our global sourcing does come from Vietnam so we are definitely in the market,â€ Calvin McDonald, Lululemonâ€™s chief executive, said in an interview. â€œWe are encouraged with the recent news of a phased opening in South Vietnam but we continue to work with our partners, shift, and if necessary, leverage airfreight and other ways to get our fall and winter goods in.â€
He added that even while the companyâ€™s guidance called for robust sales and profit for the remainder of this year, â€œwe could have stretched and achieved even more,â€ without the supply chain disruptions.
Lululemon has been one of few apparel retailers to thrive during the pandemic. Customers flocked to its pricey athleisure and exercise clothing while stuck at home, and the company made inroads in virtual fitness with last yearâ€™s acquisition of Mirror, a wall-mounted device for streaming workouts. Mr. McDonald said that Lululemon, which has more than 500 stores globally, would have 200 shop-in-shops featuring Mirror in North America by Black Friday.
The company said on Wednesday that its net revenue surged 61 percent to $1.5 billion in the second quarter as many customers returned to in-store shopping. Its net profit rose to $208 million from $86.8 million in the same period last year.
Lululemon is anticipating another boom year despite the supply chain woes and forecast that its annual net sales will be in the range of $6.19 billion to $6.26 billion. The company posted $4.4 billion in annual sales for the year ended Jan. 31, up from $3.98 billion the previous year. Its net profit declined to $589 million last year from $646 million in the prior period.