Lululemon sales soar in ‘solid start to the year’

The athleisure brand posted a 17% net revenue increase in North America and a 60% increase internationally in the three months ending April 30, 2023. 

Gross profit increased by 32% to $1.2bn (£960m), while income from operations increased by 54% to $401.4m (£320.57m). 

Total sales increased by 17% on constant dollar terms, with comparable store sales increasing by 16% and direct-to-consumer sales by 18% respectively. 

Lululemon said it expects net revenue to be in the range of $2.14bn (£1.71bn) to $2.17bn (£1.73bn), representing growth of approximately 15% in the second quarter of 2023.

Chief executive Calvin McDonald said: “We are pleased with our solid start to the year, delivering strong financial performance and continued momentum. Our results reflect the strength of our guest relationships, our innovative products and how our brand resonates across the globe.

“This year we celebrate our 25th anniversary, and our community-based model remains one of our biggest competitive advantages. We are excited for the future and remain on track to deliver on our Power of Three ×2 growth plan.”

Meghan Frank, chief financial officer, said: “Our Q1 results were strong as guests responded well to our product offering in all our markets across the globe.

“A meaningful acceleration in our China sales trend, coupled with lower air freight, contributed to our better-than-planned financial performance.

“We are pleased with our momentum heading into the second quarter and for the full year as reflected in our revised outlook for FY23.”

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