Lululemon has a 'long international runway' that will get it to $1 billion in sales (LULU)

pulse

March 23, 2018 8:56 PM

Lululemon's fundamentals will help it reach its goal of $1 billion in international sales by 2020, an Oppenheimer analyst says.

Analysts at Oppenheimer believe that company is well on its way to getting there thanks to its strong fundamentals.

Lululemon has set its sights on reaching $1 billion in international sales by 2020, and its well on its way to getting there, analysts at Oppenheimer say.

According to its third-quarter results, the athleisure retailer's sales in Asia doubled in the third quarter, while in Europe they were up 40%. The company reported total quarterly sales of $619 million, up 14% from the same quarter last year, and sales for the first three quarters ended October 29 was $1.72 billion.That "long international runway," could help reach the $1 billion target, Oppenheimer analysts Anna Andreeva and Samantha Lanman wrote in a note to clients.

Online penetration in China alone is expected to grow 40% to 50% by 2020, the analysts said. This should offset slower sales growth in Europe. The company's ambitious 2020 sales target is part of a larger plan to grow the company's total sales to $4 billion. Lululemon expects $1 billion of that figure to come from international sales, $1 billion from online sales, and another $1 billion in sales of men's apparel, its former CEO and chairman Laurent Potdevin said in an investor call in December.