Canada's Lululemon Athletica posts 24% net revenue leap in Q1 FY23

The company saw its net revenue in North America climb by 17 per cent YoY, while international sales surged by 60 per cent YoY. Total comparable sales also saw a significant boost, increasing by 14 per cent YoY or 17 per cent on a constant dollar basis. Comparable store sales saw a comparable growth, posting an increase of 13 per cent YoY, or 16 per cent on a constant dollar basis, the company said in a press release.

In Q1 FY23, Lululemon Athletica's direct-to-consumer (D2C) net revenue increased by 16 per cent YoY, or 18 per cent on a constant dollar basis. However, D2C net revenue's share of total net revenue decreased slightly to 42 per cent in Q1 FY23, compared to 45 per cent in the first quarter of the previous fiscal.

The company reported a 32 per cent YoY increase in gross profit to $1.2 billion in Q1 FY23, leading to a 360-basis-point increase in gross margin, landing at 57.5 per cent. Income from operations similarly saw a dramatic increase, rising 54 per cent YoY to reach $401.4 million.

"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," said Calvin McDonald, chief executive officer.

The robust financial performance translated into an increased operating margin in Q1 FY23, which grew 400 basis points to 20.1 per cent. Diluted earnings per share also witnessed a healthy rise, standing at $2.28 compared to $1.48 in the first quarter of FY22, the release added.

During the first quarter, Lululemon Athletica opened seven new company-operated stores. This brings the total number of the company's stores to 662 by the end of Q1 FY23.

Fibre2Fashion News Desk (DP)