Sportswear retailer Lululemon has posted a “strong” third quarter and hailed its “early performance” ahead of the peak Christmas trading period as the brand continues to resonate with shoppers globally.

Lululemon store display

Lululemon now has 686 stores around the world

Lululemon posted net revenue of $2.2bn (£1.75bn) during its third quarter, up 19% year on year, which it credited to “increased company-operated store net revenue” from new stores and comparable store sales.

Net revenue was up 12% in North America and 49% internationally, while gross profit was up 21% from $1bn (£800m) during the same period in 2022 to reach $1.3bn (£1bn).

Total comparable sales during the period were up 13%, or 14% on a constant dollar basis.

During the quarter, the retailer opened 14 net new company-operated stores, bringing its store estate to 686.

Lululemon said it expects net revenue during the fourth quarter to be in the range of $3.14bn (£2.49bn) and $3.17bn (£2.52bn), which would reflect growth of 13% to 14%.

For the full year, Lululemon added that it anticipates net revenue to reach between $9.55bn (£7.60bn) and $9.58bn (£7.63bn).

Chief executive Calvin McDonald said: “This was another strong quarter for Lululemon as our innovative product offerings and community activations continued to powerfully resonate with our guests globally.

“As we enter the holiday season, we are pleased with our early performance and are well-positioned to deliver for our guests in the fourth quarter. I am energised by the significant opportunities ahead and would like to thank our incredible teams around the world for their continued passion and commitment to our brand.”

Chief financial officer Meghan Frank added: “Our third-quarter performance, which exceeded our expectations on the top and bottom lines, reflects the ongoing strength of our business model and our teams’ ability to successfully execute at a high level amid an uncertain macro environment.

“As we look to the end of our fiscal year and into 2024, we remain focused on driving long-term growth and creating value for all our stakeholders.”