- Analysts at Oppenheimer believe that company is well on its way to getting there thanks to its strong fundamentals.
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Lululemon has a 'long international runway' that will get it to $1 billion in sales (LULU)
Lululemon's fundamentals will help it reach its goal of $1 billion in international sales by 2020, an Oppenheimer analyst says.
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.
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