What’s going on?

Lululemon (high-end athleisure brand) reported better-than-expected 2Q earnings of $1.5b, a 61% climb yoy.

What does this mean?

• Lululemon’s ecommerce business unsurprisingly had a great run in 2Q. What’s astonishing is the return of bricks-and-mortar shopping, with Lululemon’s store sales almost returning to pre-pandemic levels. 
• Lululemon’s on track to achieve its 2023 revenue target by the end of 2021.

Why should I care?

The bigger picture: Global supply chain issue

• Following the news, Lululemon’s shares were sent up 13%
• But one might not want to pour all his money in the company yet:
  • Lululemon has been dealing with supply delays since covid’s last wave, and any new spikes could make it even more difficult to procure the supplies.
  • While some of Lululemon’s Asian factories are set to reopen later September 2021, local outbreaks and global shipping slowdowns can’t end this entirely just yet.

Zooming out: Flying is becoming trendy again

At least airlines are making a comeback:

• EasyJet (UK-based budget airline) is set to raise $1.4b by issuing shares, which is expected to help EasyJet offer package holiday offerings and better compete with its competitors.

Content source: Finimize (2021) Endorphin Rush. Available at: https://www.finimize.com/wp/news/endorphin-rush/ [Accessed on Sep 11, 2021]