Business

LuluLemon’s Irish retail business takes Covid hit ahead of new store opening

Lululemon’s ‘bricks and mortar’ retail business here last year took a Covid-19 income hit as revenues tumbled by 23.5 per cent to €1.98 million.

The high end yoga apparel seller — popularised by the likes of supermodel, Gisele Bundchen and Kendall Jenner — has its only store here at Brown Thomas on Dublin’s Grafton Street.

The retailer is due to move into a new stand-alone flagship store on Grafton Street next month.

It was confirmed earlier in June that the Canadian owned retailer signed a 10-year lease for 84 Grafton Street in a premises formerly occupied by retailer, Pamela Scott.

Covid-19 enforced closures

Now, new accounts show that the drop in revenues at Lululemon Athletica in the 12 months to the end of January this year due to Covid-19 enforced closures followed sales growth of 34 per cent in the prior year.

The new accounts shown that pre-tax profits at the Lululemon Irish retail arm increased by 11pc from €57,120 to €63,582 to the end of January this year.

However, the profits include €28,877 in Government Covid-19 wage subsidy scheme payments that appear in the profit and loss account.

The pre-tac profit also includes ‘other income’ of €187,955.

The directors state they are actively looking into new business opportunities for the company.

Paula Walker participates in a yoga class while dressed in Lululemon Athletica yoga clothes at the Green Monkey yoga studio on December 10th, 2013 in Miami Beach, Florida. Lululemon Athletica, (Photo by Joe Raedle/Getty Images)

 

The directors also state that in line with Government Covid-19 measures, Lululemon shut down its store here in the first quarter of last year and re-opened it in the second quarter.

The directors state that “the Covid-10 pandemic has materially imputed our statement of operations”.

The directors state that the business was forced to furlough its staff following the closure of the business in the first quarter of last year.

The directors state that the company supported its employees by providing full pay protection and received a Government subsidy of €28,877 which partially off-set these costs.

The company’s staff costs last year totalled €465,189 while its occupancy costs reduced from €630,958 to €483,529.

Numbers employed increased from 10 to 18.

Source:

www.breakingnews.ie

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