In this edition of the Glossy+ Research Briefing, we examine how Lululemon’s dual focus on in-store and e-commerce sales is expected to result in a favorable Q3 earnings report, as seen in data from Glossy+ Research.
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48% of brands and retailers will invest in owned digital platforms this year
Breaking news: Lululemon is expected to report net revenue growth of 17% to 18% year-over-year when it releases its third-quarter earnings results later today. The retailer said in August that it expected Q3 net revenue to come in at about $2.2 billion. That’s after having placed greater emphasis on in-store sales and upping its e-commerce offerings. Lululemon opened 10 new stores in Q2 2023, with a goal of 55 new stores by year end. In recent years, it also began offering curbside pickup and same-day deliveries for online orders. Lululemon’s DTC operations remain its bread and butter, representing 40% of the company’s total net revenue as of Q2.
Across the board, brands expect to invest the most in their owned e-commerce sites in the coming 12 months, according to Glossy+ Research findings. And, on average, marketers’ owned e-commerce sites also grow most in importance to them during the holiday season.
Research findings: Brands and retailers responding to Glossy and Modern Retail’s Q1 2023 survey said brands’ owned e-commerce platforms were the No. 1 sales channel they would invest in most over the next 12 months. Marketplaces were second at 15% of respondents, and retail partners’ owned digital channels and physical stores tied for third, each chosen by 14% of respondents.
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When it comes to the holiday season, more than three-quarters of marketers (76%) agree that owned e-commerce platforms grow the most in importance to their holiday marketing plans — the largest user group to agree a channel becomes more important to them during the holidays.
It’s generally most advantageous for brands to have customers convert on their own e-commerce sites, as opposed to marketplaces or other retailers. Owned e-commerce sites are an important hub of product information during the cluttered holiday season with updated logistics information, such as shipping cutoff dates. And, unlike on other retailers’ sites or third-party marketplaces, there are no brand messaging restrictions, and brands don’t have to compete with others for space or attention.
Read more about marketers’ 2023 holiday strategies
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