Lululemon is acquiring more new shoppers than ever before, CEO Laurent Potdevin told CNBC’s “Squawk on the Street” Thursday morning, with many of those new customers being men.
Lululemon shares were climbing more than 7 percent in early trading, following an upbeat third-quarter earnings report after the bell Wednesday. In turn, many analysts who cover the company raised their price targets on the stock.
Same-store sales jumped 8 percent in the fiscal third quarter, outpacing analysts’ estimates and boosted by double-digit growth online. According to the athletic apparel retailer, its first-ever men’s campaign fueled a 21 percent increase in new male guests ringing up purchases during the latest quarter.
“We have so much runway in the [men’s] segment. … I have yet to see a guy try our product and say: ‘It’s not for me,'” Potdevin later explained on CNBC.
The company now expects holiday-quarter sales to reach as much as $885 million, following what were Lululemon’s greatest sales ever on Black Friday and Cyber Monday. The company also participated in Alibaba‘s recent Singles Day, which amassed record sales overseas.
Lululemon said its latest marketing initiatives have lured more customers to the brand, and shoppers have reacted favorably to new product fits and fabrics.
Potdevin said strong third-quarter results keep Lululemon on track to achieve a target of $4 billion in annual revenue in 2020. That includes $1 billion in online sales, $1 billion in international sales and $1 million in revenue from its men’s category — the remainder will stem from women’s and…