Lululemon’s Footwear Launch ‘Far Exceeded’ Expectations and Outweighed Supply

Lululemon just reported better-than expected results for the first quarter, in part driven by the brand’s successful launch into new categories like footwear, golf and tennis. The Vancouver, British Columbia-based athleisure brand reported that first quarter net revenues increased 32% to $1.6 billion versus an expected $1.53 billion. In North America, revenues increased 32%. Earnings per share were $1.48 compared to an expected $1.43. Lululemon launched footwear for women in March. CEO Calvin McDonald said in a call with investors that demand for the new products in Q1 were in excess of supply and “far exceeded” the company’s expectations. “We definitely had a lot more demand than we anticipated,” McDonald said of the shoe collection, which kicked off with the Blissfeel running shoe in March and the Restfeel slide this week. Two more training shoes, the Chargefeel and the Strongfeel, are set to roll out this year. Though the shoes were designed for women first, the brand plans to launch a collection of men’s footwear in 2023. McDonald said the shows sold out more quickly than would have been desired in “an ideal scenario,” though he described the success at this early stage as encouraging. “The team is focused on learning and adapting. What’s challenged that a

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