The head of Lululemon Athletica Inc. says the company has seen a strong response to an Edmonton pilot of its first loyalty program. File photo by THE CANADIAN PRESS

Lululemon testing loyalty program, profits increase to US$94.4 million in Q3

VANCOUVER — The head of Lululemon Athletica Inc. says the company has seen a strong response to an Edmonton pilot of its first loyalty program.

“The response was very strong, and exceeded our expectations,” said company CEO Calvin McDonald on an earnings conference call Thursday.

The annual loyalty program costs $128 to join with the member receiving either a pair of pants or shorts designed for the program, as well as expedited shipping on e-commerce purchases and access to monthly sweat classes and curated events.

The company will continue piloting the program through the first half of next year with some expansions outside of Edmonton, said McDonald, who stepped into the CEO role in August.

“We have a few additional markets that we’re going to be launching in, and .125we’re.375 very excited as we look forward to the ability to have a membership-based program where it’s driving loyalty, but guests are seeing value in this curation of services and content beyond just our product.”

The loyalty program experiment comes as the company also continues to expand its store base with the opening of 38 net new locations since the third quarter of last year. Locations include 14 in the U.S., 11 in Asia, seven in Europe, four in Canada, and two in Australia/New Zealand.

The added stores helped boost net revenue by 21 per cent to US$747.7 million in the third quarter. The net revenue was partially offset by a US$9.3 million loss on the foreign exchange rate and the closure of 48 of its Ivivva brand stores.

Net income surged 60 per cent to US$94.4 million, up from the US$58.9 million the year before.

The Vancouver-based apparel company said its earnings per diluted share amounted to 71 cents per share, compared to 43 cents per share in the third quarter of 2017.

According analysts polled by Thomson Reuters Eikon, Lululemon was expected to earn $92.5 million profit or 69 cents per share.

Meanwhile the company’s e-commerce efforts netted US$476.9 million in sales, compared to US$425.1 million the year before.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Alberta has 3,651 active cases of COVID-19. (File photo)
432 new COVID cases sets another record Friday

Central zone holds steady at 126 active cases

A Red Deer County man was arrested for drug possession by Innisfail RCMP on April 19. (File photo by Advocate staff)
Property crime and drugs top Red Deer RCMP priorities in new plan

2020-2022 Policing Priorities Plan going to city council on Monday

RCMP estimate about 500 people gathered on the weekend near Garrington Bridge along the Red Deer River, in a July 28, 2020 story. (File photo by Advocate staff)
Second person charged for alleged assault at anti-racism rally in Red Deer

A second person is facing charges following an alleged assault during an… Continue reading

Alberta Union of Provincial Employees vice-president Bonnie Gustola criticized provincial government layoffs at a rally that drew more than 80 people at City Hall Park on Friday.
Photo by PAUL COWLEY/Advocate staff
More than 80 rally in Red Deer against government health, education cutbacks

Rally at City Hall Park organized by the Council for Canadians

The higher the education level, the higher the income of some 1.3 million post-secondary graduates surveyed between 2010 and 2015, with master's degrees paying off the most. But the findings also suggest that gender and timing matter. (Black Press Media File).
2020 high school grads won’t get their ceremony

Decision announced by Lindsay Thurber and Hunting Hills high schools, and Gateway Christian School

B.C. Liberal leader Andrew Wilkinson, B.C. NDP leader John Horgan and B.C. Greens leader Sonia Furstenau. (Black Press Media)
VIDEO: One day until B.C. voters go to the polls in snap election defined by pandemic

NDP Leader John Horgan’s decision to call an election comes more than a year ahead of schedule and during a pandemic

Alice Kolisnyk, deputy director of the Red Deer Food Bank, says the agency expects an increase in demand as the COVID-19 pandemic continues. Every new subscription to the Red Deer Advocate includes a $50 donation to the food bank. (Photo by BYRON HACKETT/Advocate Staff)
Support the food bank with a subscription to the Red Deer Advocate

The community’s most vulnerable members are always in need of a hand,… Continue reading

New voluntary measures, including the encouragement of more mask wearing, have been introduced in the Edmonton health zone. “Red Deer has been very fortunate to have relatively low case numbers . . . relative to the rest of the province and the country,” says Mayor Tara Veer. THE CANADIAN PRESS/Graham Hughes
POLL: Should Alberta have stricter rules to help prevent the spread of COVID-19?

Should Alberta have stricter rules to help prevent the spread of COVID-19?… Continue reading

Lanto Griffin putts on the ninth hole during the second round of the Zozo Championship golf tournament Friday, Oct. 23, 2020, in Thousand Oaks, Calif. (AP Photo/Marcio Jose Sanchez)
Thomas has a fast start for a 65 and a 1-shot lead at Zozo

Thomas has a fast start for a 65 and a 1-shot lead at Zozo

Mariah Bell of the United States, competes during women's short program in the International Skating Union Grand Prix of Figure Skating Series, Friday, Oct. 23, 2020, in Las Vegas. (AP Photo/David Becker)
Bell, Tennell go 1-2 in Skate America short program

Bell, Tennell go 1-2 in Skate America short program

Team Saskatchewan skip Matt Dunstone flips his broom in frustration following a shot as they take on Team Alberta in the playoffs at the Brier in Kingston, Ont., on Saturday, March 7, 2020. THE CANADIAN PRESS/Sean Kilpatrick
Team Matt Dunstone considers relocation due to restrictions in Saskatchewan

Team Matt Dunstone considers relocation due to restrictions in Saskatchewan

Police in Ottawa are investigating an incident of hate-motivated graffiti at the National War Memorial. The alleged incident happened last Friday night, when police say a man, shown in a police handout photo, used a sharp object to engrave a hateful message on the Tomb of the Unknown Soldier. THE CANADIAN PRESSS/HO-Ottawa Police Service MANDATORY CREDIT
Ottawa police investigating hate-motivated graffiti incident at National War Memorial

Ottawa police investigating hate-motivated graffiti incident at National War Memorial

Indigenous fisherman Robert Syliboy stands on the wharf in Saulnierville, N.S. on Wednesday, Oct. 21, 2020. Tensions remain high over an Indigenous-led lobster fishery that has been the source of conflict with non-Indigenous fishermen. THE CANADIAN PRESS /Andrew Vaughan
For Mi’kmaq fishers, dreams of a peaceful harvest on N.S. waters repeatedly dashed

For Mi’kmaq fishers, dreams of a peaceful harvest on N.S. waters repeatedly dashed

RCMP Commissioner Brenda Lucki speaks during a news conference in Ottawa, Wednesday October 21, 2020. Perry Bellegarde, national chief of the Assembly of First Nations, says he is set to tell Prime Minister Justin Trudeau he has 'lost confidence' in RCMP Commissioner Lucki. THE CANADIAN PRESS/Adrian Wyld
Bellegarde wants Brenda Lucki out as head of RCMP

Bellegarde wants Brenda Lucki out as head of RCMP

Most Read