LULU Online Customer Mix

Following Lululemon’s recent quarterly earnings, we took a look at how our data tracked management’s comments for online growth and customer mix.

“As our stores continue to recover, our e-commerce business has accelerated from a 41% comp in quarter 4 of last year to 157% comp in the current quarter. Similar to quarter 1, we’ve seen a healthy mix of new guests, existing e-commerce guests and historically retail-only guests now shopping with us online.”

It’s not surprising that store closures and COVID concerns would drive existing customers online. However, what’s notable is that the share of new online customers climbed substantially, surpassing the seasonally high holiday quarters by ~ 10 pts. The question remains if LULU can sustain such online (and overall) growth levels, particularly heading into the upcoming holiday season, with a much heavier mix of new online shoppers contributing to its current success.

For more examples of how our data tracked customer trends discussed by management, see Earnings by Earnest: 2Q 2020.