We have enough inventory inbound to support guidance we’ve provided: Lululemon CEO
As many retailers fret about supply chain disruptions ahead of the holiday shopping season, Lululemon Athletica Inc.’s chief executive said he’s not worried about meeting sales targets.
“We’ve been working with our manufacturing partners around the globe, in Vietnam in particular, as well as with our transportation partners. We have enough inventory inbound to support the guidance we’ve provided,” Calvin McDonald said in an interview Tuesday.
“There’s definitely incredible momentum in the business and we could’ve satisfied even more demand.”
Lululemon’s sales got a boost during the COVID-19 pandemic as people stocked up on yoga pants and sweatshirts while they worked and exercised at home. The company’s stock price has nearly tripled since its March 2020 lows.
“We’re not quite out of [the pandemic] yet but we’re definitely seeing a very strong acceleration in our momentum. I think the reason for that is what was contributing to our growth pre-pandemic has just accelerated.”
The athletic apparel company is hoping the at-home workout trend will continue even as economies reopen after its recent acquisition of connected fitness device company Mirror. Mirror plans to expand into Canada on Nov. 22.
McDonald sees those connected fitness devices and online workout classes as a way to connect deeper with Lululemon customers.
“Early on, I was very excited about the opportunity – seeing what was happening with at-home connected fitness as a means for us to continue to strengthen [customer relationships] through offering a means in which our guests can sweat with us, sweat with our community and our ambassadors and instructors at home. So Mirror really plays strong to that position,” he said.
Lululemon also unveiled its first-ever official Team Canada uniforms Tuesday for the 2022 Olympic and Paralympic Winter Games, as part of a multi-year agreement signed with the Canadian Olympic Committee and Canadian Paralympic Committee.
The company announced last quarter that it expects to meet its five-year growth goals by the end of this year – two years earlier than planned. McDonald said Lululemon will provide a new five-year trajectory next year.