What do their website visitation trends indicate?

Lululemon Athletica Inc. (LULU) will release its fourth quarter financial results after the market closes today. This Canadian retailer sells apparel, sporting and lifestyle goods, and personal care products and accessories.

About 50% of Lululemon’s revenue comes from the online sale of its products. Therefore, the total number of visits to the website is a good indicator of user engagement with the Lululemon platform. The increase in the number of website visitors suggests a higher demand for the company’s products, which implies an increase in digital sales and vice versa.

Given Lululemon’s focus on digitization, it’s worth looking at the trend of website visits ahead of Q4 printing to get a better picture of the current state of the business.

Lululemon Q4 website visits Statistics

We discovered through the tool that overall predicted visits to the Lululemon website declined in the fourth quarter. In particular, total projected global visits to lululemon.com increased 33.2% sequentially from the third quarter.

Lululemon’s online sales may have increased in the unreported quarter, based on growth in monthly users. The business is expected to take advantage of the tailwinds in demand during the holiday season, including the trend towards health, wellness and preference for sports recreation.

Additionally, the number of visitors to the lululemon.com website fell 22.4% year-over-year to 31.2 million in the fourth quarter.

While Lululemon’s e-commerce achievements are evident, supply chain challenges, labor constraints and inventory issues may have impacted the company’s profits in some measure.

The Taking of Wall Street

Wall Street analysts are cautiously bullish on Lululemon, with a Moderate Buy consensus rating based on 13 buys, six holds and one sell. Lululemon’s average stock forecast of $418.61 implies an upside potential of around 26.2% from current levels for this stock.


With physical sales rebounding as customers return to stores, Lululemon’s internet traffic indicates the company could see strong online sales in the fourth quarter as well.

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About William G. Patrick

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