Lululemon can be acquiring more completely new shoppers than ever before, CEO Laurent Potdevin told CNBC’s “Squawk on the Street” Thursday morning, with many of those completely new customers being men.
Lululemon shares were climbing more than 7 percent in early trading, following an upbeat third-quarter earnings report after the bell Wednesday. In turn, many analysts who cover the company raised their cost targets on the stock.
Same-store sales jumped 8 percent inside fiscal third quarter, outpacing analysts’ estimates as well as boosted by double-digit growth online. According to the athletic apparel retailer, its first-ever men’s campaign fueled a 21 percent increase in completely new male guests ringing up purchases during the latest quarter.
“We have so much runway inside [men’s] segment. … I have yet to see a guy try our product as well as say: ‘This specific’s not for me,'” Potdevin later explained on CNBC.
The company currently expects holiday-quarter sales to reach as much as $885 million, following what were Lululemon’s greatest sales ever on Black Friday as well as Cyber Monday. The company also participated in Alibaba’s recent Singles Day, which amassed record sales overseas.
Lululemon said its latest marketing initiatives have lured more customers to the brand, as well as shoppers have reacted favorably to completely new product fits as well as fabrics.
Potdevin said strong third-quarter results keep Lululemon on track to achieve a target of $4 billion in annual revenue in 2020. that will includes $1 billion in online sales, $1 billion in international sales as well as $1 million in revenue via its men’s category — the remainder will stem via women’s as well as “innovation.”
“We are almost halfway there,” the CEO told CNBC Thursday about those goals.
Internationally, Lululemon can be producing a bigger push in China, where Potdevin said millennial consumers are finally looking to live healthier lifestyles, as well as commit to staying active.
“We are at the beginning of a movement in China,” he said. “[as well as] we are at the front of that will movement.”
Lululemon expects to open six additional stores in Asia during the fourth quarter. By the end of 2017, the company will have opened 46 completely new stores overall.
“While some other players inside sports as well as athleisure market struggle, Lululemon continues to go via strength to strength,” Kevin Wathey, a consultant with GlobalData Retail, wrote in a note to clients.
“Lululemon can be still attracting completely new customers as well as can be getting existing shoppers to spend more at both its stores as well as online,” Wathey added. “The strength of Lululemon’s bottom line can be mostly thanks to its ability to resist the temptation of excessive discounting — even in a market that will has become steadily more promotional.”
Lululemon shares have risen about 11 percent This specific year. that will compares with rival Nike, which has gained more than 17 percent, as well as Under Armour, which has tumbled more than 50 percent over the same period.