Lululemon (NASDAQ:LULU) reported a 10 percent revenue increase for the first quarter of 2015. The results are a surprise because the company just entered a transitional phase, expanding to new locations in Asia and Europe and increasing product assortment. But the growth can be attributed to two factors: menswear and online sales.
Looking at online, the retailer increased its direct-to-consumer sales via mobile and the Web by 27 percent to $83.6 million, Forbes reported. The channel is now responsible for 20 percent of the retailer's overall sales. In comparison, four years ago, only 7 percent of all revenue came from online sales.
The addition of menswear in the past two quarters has really given Lululemon a needed boost. Men's apparel officially gained 18 percent in year-over-year growth. It now accounts for 20 percent of the total store assortment. The most popular item? Men's $128 ABC (anti-ball-crushing) pants are becoming popular with millennials.
In November of 2014, the company opened its first men's only store in New York, staffed with tailors who can customize fit and lining. Lululemon believes the market is ultimately around $1 billion. The company did mention expansion of several current stores, looking to make room for additional men's products. The company joins a growing list of retailers who recently launched men's only stores including Barneys.
-See this Forbes article
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