Lululemon faucets former Amazon exec as new CEO of its at-home gymnasium Mirror

Michael Aragon was previously the chief content officer of Twitch, Amazon’s live streaming business.

Source: Lululemon

Lululemon said Thursday it called earlier Amazon Managing Director Michael Aragon as Chief Executive Officer of his home gym, Mirror.

Aragon will also oversee Lululemon’s broader digital fitness endeavors, the retailer said in a press releasewho reports directly to the CEO of Lululemon, Calvin McDonald. The changes will take effect on January 17th.

Lululemon bought Mirror for $ 500 million in 2020. In September, then CEO Brynn Putnam resigned from their role. She founded the company in 2016.

Aragon was previously the chief content officer of Twitch, Amazon’s live streaming business. He also held positions at Sony groupto expand the PlayStation network.

In this new role, Aragon will face an increasingly competitive market for connected fitness equipment. Among the rivals are Peloton, Tonal, Hydrow and many others. The category exploded with interest as gyms temporarily closed and consumers looked for ways to exercise at home during the pandemic.

In December, Lululemon lowers its forecast for Mirror sales in fiscal year 2021 between $ 125 million and $ 130 million. Previously, the company had expected sales of $ 250 million to $ 275 million for the device, which will be wall-mounted and allow users to take cardio and other exercise classes.

Separately, Lululemon will oppose a. defend legal action filled in by Nike on Wednesday, which Mirror accused of infringing some of Nike’s patents.

Lululemon responded to the lawsuit by stating that Nike’s patents are “too broad and invalid. We believe in our position and look forward to defending it in court.”

Lululemon shares were unchanged in after-hours trading, closing the day up 1.7% at $ 368.77.

What’s Coming Up on Cash & Markets + Lululemon Earnings Preview

Money and Market Economy Week Week of September 6, 2021: The financial markets are closed on Mondays, but there is still a lot to add to the calendar.

We will continue to be busy with Money & Market. I’d love to preview some of the upcoming content that I don’t want to miss. We’ll also tell you what to expect from Lululemon Athletica’s earnings and what to see in a post-COVID-19 job market report.

come money & market

Here Are Some Sneak Peaks Money & Market The Content You Can Expect Last Week.

Monday: It’s a holiday for the financial markets and our team. But we’re trying something new. You will find an email in your inbox with details about the first competition. It’s your chance to win money and market equipment, and I’ll give you one tip: improve your stock valuation skills in the green zone here..

Tuesday: Green Zone Fortune co-editor Charles Sizemore is considering your retirement. Big news fell from Social Security last week. Charles has some tips on how to make sure your nest egg is in good shape going forward.

Thursday: Research analyst Matt Clark enjoys talking about our cannabis stock Youtube channel.. In a live chat on Thursday you will have the opportunity to ask questions about the cannabis industry. Get ready for your question and join Matt at 4:00 p.m. EST.

Deeper Insight: Lululemon Income

Beyond the high-earnings season, there are still a few notable companies to report quarterly figures for the next few days.

Lululemon Athletica Inc. (Nasdaq: Lulu). I will report the income on Wednesday.

A popular sports and casual wear company has become a pandemic darling as people work and exercise at home. LULU’s share price has risen 135% from its March 2020 lows.

And that success resulted in a number of revenue and sales blows.

Earnings per share (EPS) are reported to have increased $ 1.16, 27.5% higher than analysts expected, in Lululemon’s latest earnings call for the quarter ending April 2021.

Looking back, Lululemon has seen sales jump nine of the last ten quarters, the only problem being the onset of the COVID-19 pandemic in spring 2020.

Lululemon’s sales fell sharply at the start of the pandemic, but sales steadily recovered through the second half of 2020, almost doubling from the second quarter to the fourth quarter of 2020.

Lululemon reported that online sales accounted for 44% of sales in the first quarter of 2021, compared to 54% in the year-ago quarter. As a result, total store sales increased 55% compared to the previous year. -The mortar site has reopened.

slim: Analysts are forecasting EPS growth of $ 1.18 for LULU in the second quarter and revenue of $ 1.33 billion in 2021, which I believe will once again beat that number.

Companies that focused on selling online during the pandemic flourished. I’ve seen it at traditional retailers like Walmart and Target, but it’s the same at small businesses like Lululemon.

With consumers wrestling with the COVID-19 delta variant, it will be interesting to see how that trend unfolds as the holiday season approaches.

Data dump: USJOLT jobs

A healthy labor market equals a healthy economy.

The Job and Sales Survey (JOLT) provides insights into the state of the labor market and the Bureau of Labor Statistics will publish the results of the July survey on Thursday.

JOLT uses three criteria to define a job. There is a position, the position can be opened within 30 days and the company is actively hiring the position. The JOLT survey also reports on employment and turnover (layoffs, retirement, etc.) so it provides a relatively broad view of the labor market.

There were 10.1 million jobs end of June, Series up.

There are enough jobs

Employment also rose 4.6% to 6.7 million in June, increasing retail, state and local government, education, and consumer durables manufacturing. The separation also increased slightly to 5.6 million.

Overall, there was a net increase of 6.9 million employees in the 12 months to June.

slim: Economists forecast 9.28 million jobs in July. That’s well below the June numbers, but I think it’s easy to beat.

Over the next few months, this data should reflect the effects of the COVID-19 delta variant. The federal unemployment benefit set by the CARE law in 2020 will also expire on Monday.

Sales report

Finally, Money & Markets Week Ahead, let’s take a look at some of the keys here revenue Report this week:

Monday

Uxin Ltd. (Nasdaq: UXIN).

Agraflora Organics International Inc. (OTC: AGFAF).

Tuesday

Caseys General Stores Inc. (Nasdaq: CASY).

Dada Nexus Ltd. (Nasdaq: chest).

Wednesday

Lululemon Athletica Inc. (Nasdaq: Lulu).

GameStop Corp. (NYSE: GME).

RH (NYSE: NS).

Thursday

Sun Hung Kai Properties Co., Ltd. (OTC: SUHJY).

Affirm Holdings Inc. (Nasdaq: AFRM).

National Beverage Corp. (Nasdaq: FIZZ).

Academy Sports Outdoors Inc. (Nasdaq: Yes sir).

Friday

Ellaktor SA ADR (OTC: ELLKY).

Number one,

Chadstone

Assistant Managing Editor, Money & Market

What’s Up for Money & Markets + Lululemon Yield Forecast Source link What’s Up for Money & Markets + Lululemon Yield Forecast

Lululemon (LULU) studies Q1 2021 earnings

Pedestrians wearing protective masks walk past a Lululemon store in San Francisco, California on Monday, March 29, 2021.

David Paul Morris | Bloomberg | Getty Images

Lululemon Athletica said Thursday that fiscal first quarter revenue rose 88%, beating analysts’ estimates as buyer traffic in its stores steadily rebounded.

The sportswear maker also gave a strong forecast for the second fiscal quarter and raised its estimates for the full year as momentum for its brand builds across all regions.

The stock rose less than 1% after the news in expanded trading.

Here’s how Lululemon performed in the reporting period ending May 2, compared to analyst expectations based on a refinitive survey:

  • Earnings per share: adjusted 1.16 US dollars vs. 91 cents expected
  • Revenue: $ 1.23 billion versus an expected $ 1.13 billion

Net income rose to $ 145 million, or $ 1.11 per share, from $ 28.6 million, or 22 cents per share, last year. With no one-time fees, Lululemon made $ 1.16 per share, better than analysts’ estimate of 91 cents per share.

Revenue increased from $ 652 million a year ago to $ 1.23 billion. when his shops were temporarily closed. That was above expectations of $ 1.13 billion.

On a two-year basis, sales increased 57%. Lululemon also said the men’s business grew faster than the women’s business compared to 2019.

The Covid pandemic has fueled buyer demand for all-home fitness equipment and home workouts like running and spinning biking. The trend, which didn’t seem to be slowing, benefited companies like Lululemon, Nike and Under armor. It also has more traditional retailers like gapwho said recently The sale of sportswear continues to grow Sales on both the Athleta and Old Navy banners.

Lululemon’s direct-to-consumer sales increased 55% year over year to $ 545.1 million. Sales in North America increased 82% and international sales increased 125%.

CEO Calvin McDonald told analysts on Thursday that Lululemon still believes that its international business will grow on a par with its North American operations in the near future. At the end of 2020, international sales represented only 14% of Lululemon’s total business.

The company also owns the home fitness platform Mirror, a rival of Peloton. Lululemon expects Mirror to have sales between $ 250 million and $ 275 million this year.

CFO Meghan Frank said the momentum has remained strong over the past few weeks. The company continues to invest in innovative merchandise to generate excitement. It recently did a number of Products that use dyes with less effect, and it is testing a trade-in and resale program.

For the second fiscal quarter, Lululemon expects adjusted earnings per share in a range of 1.10 to 1.15 US dollars on sales of 1.3 to 1.33 billion US dollars. According to a Refinitiv poll, analysts had expected earnings of $ 1.01 per share on sales of $ 1.20 billion.

For the year, adjusted earnings are expected to be $ 6.73 to $ 6.86 per share on revenue of $ 5.83 to $ 5.91 billion. Analysts had expected earnings of $ 6.48 per share on sales of $ 5.68 billion.

Previously, Lululemon had claimed revenue of $ 5.55 billion to $ 5.65 billion for fiscal 2021.

“We performed well before the pandemic, I think we led the peer group during the pandemic, and we’re excited about … our ability to continue to perform well after the pandemic,” said McDonald.

Lululemon stocks are down about 9% since the start of the year. It has a market capitalization of $ 41.4 billion.

Find the full press release on Lululemon’s results here.