lululemon Athletica Inc. is engaged in the design, distribution, and retail of technical athletic apparel, footwear, and accessories,, mainly sold through its 623 company-operated stores and e-commerce.
Also, given the revenue per store trend, and given that the company projects 15% revenue with similar square footage growth - are they not implicitly assuming that revenue per sq ft will remain constant? May DTC pick that up a bit. What is your 5 year out store count? And any thoughts on capex per store?
Also, what are your thoughts about the declining revenue per sq ft?
“However, in recent years, revenue per square foot in the retail space has declined. From $1,595 in 2018, this metric declined to $1,425 in 2019 and it further dropped down to only $755 in 2020. However, this figure increased to $1086 in 2021, due to increased economic activity after a long period of stores shutdown during the onset of pandemic.”
On EBIT margins - do you think the fact that a lot of what Lulu sells is a single material / fabric and hence they can source is cheaper? I see that even Aritzia does not do wholesale but Lulu has higher margins. Ofcourse size is a factor. Given how much real estate they give to yoga pants within stores - it must be 25-30% of revenue
Excellent article. I've been very intrigued by this name over the past months and the curious thing is that Conor's articles were the catalysts. Great job re-sharing that write-up!
Also, given the revenue per store trend, and given that the company projects 15% revenue with similar square footage growth - are they not implicitly assuming that revenue per sq ft will remain constant? May DTC pick that up a bit. What is your 5 year out store count? And any thoughts on capex per store?
Also, what are your thoughts about the declining revenue per sq ft?
“However, in recent years, revenue per square foot in the retail space has declined. From $1,595 in 2018, this metric declined to $1,425 in 2019 and it further dropped down to only $755 in 2020. However, this figure increased to $1086 in 2021, due to increased economic activity after a long period of stores shutdown during the onset of pandemic.”
On EBIT margins - do you think the fact that a lot of what Lulu sells is a single material / fabric and hence they can source is cheaper? I see that even Aritzia does not do wholesale but Lulu has higher margins. Ofcourse size is a factor. Given how much real estate they give to yoga pants within stores - it must be 25-30% of revenue
Excellent article. I've been very intrigued by this name over the past months and the curious thing is that Conor's articles were the catalysts. Great job re-sharing that write-up!