• by Sarah Mahoney  @mahoney_sarah, December 12, 2021

Image above: Simone Biles (center) in Athleta ad.

Sales at Lululemon and Athleta continue to defy gravity, demonstrating that the world is nowhere near ready to surrender the stretchy comfort of athleisure.

Lululemon performed better than analysts expected, with revenue climbing 30% to $1.5 billion in its fiscal third quarter. The Vancouver-based company says that includes a 28% increase in North America and a 40% jump internationally. Comparable store sales advanced 32%, with direct-to-consumer revenue improving 23% to $586.5 million.

Profitability also improved, with adjusted income from operations rising 32% to $282.1 million.

Early holiday sales are coming on strong and the brand “continues to resonate in markets around the world,” says Calvin McDonald, Lululemon’s chief executive officer, in its announcement.

However, the bad news came as the company lowered its forecast for Mirror, the connected-fitness unit it bought last year for $500 million.

The company says it now expects sales for the year to come in between $125 million and $130 million. In June, it had forecast that Mirror’s 2021 sales would be much higher, between $250 million and $275 million.

The disappointment comes as more people head back to the gym and the pandemic-driven mania for home workout gear fades.

Peloton, its rival in both fitness equipment and lately, apparel, is having similar problems, recently slashing its sales forecasts, as well. (Peloton has another problem, dealing with the death of a beloved “Sex in the City” character after a Peloton sweat fest.)

Meanwhile, Athleta parent company Gap has its hands full with struggles at its other divisions, but sales at Athleta are soaring. The company recently said that third-quarter revenue at the athleisure division jumped 48% versus 2019, with comparable sales gaining 2% year-over-year and 41% compared to 2019.

Athleta also launched its Canadian online business at the end of August. It’s expanding its physical presence in Lululemon’s backyard as well, opening its first company-operated Canadian store in Vancouver, followed by one in Toronto.

The company scored many headlines when it wooed gymnast Simone Biles away from Nike. It has released its first item with Biles, and says a larger collection is planned for spring