Lululemon Thrives In Q3 Despite Tough Athleticwear Environment

The athletic apparel sector has been under plenty of stress in 2017, with sporting goods players taking a 3% sales hit in Q3. But the strong lululemon brand is keeping the retailer afloat, despite the many issues plaguing athleticwear.

Lululemon reported a 14% increase in sales to $619 million in Q3, with same-store sales increasing 8%. Brick-and-mortar same-store sales jumped 2%, while direct-to-consumer sales leapt 26%. The company reported net income of $59 million and earnings per share of $0.43 for the quarter, down from $68 million due the expense of restructuring its ivivva kids operations.

Lululemon appears to have three factors going for it that its competitors in the athleticwear space haven’t quite figured out: brand community, limited markdowns and restrained…