Canada's Lululemon Athletica's revenue surges 7% in Q2 FY24

Lululemon Athletica, a Canada-based multinational athletic apparel company, has reported a 7 per cent increase in net revenue for the second quarter of fiscal 2024 (Q2 FY24), reaching $2.4 billion, or an 8 per cent rise on a constant dollar basis compared to the same period in 2023.

The company's performance was bolstered by significant growth in its international markets. International net revenue surged by 29 per cent, or 31 per cent on a constant dollar basis, showcasing Lululemon's successful expansion efforts outside the Americas. In contrast, the Americas region experienced a more modest revenue increase of 1 per cent, or 2 per cent on a constant dollar basis, the company said in a press release.

Overall, comparable sales grew by 2 per cent, or 3 per cent on a constant dollar basis. However, the performance varied by region. While the Americas saw a 3 per cent decline in comparable sales, or a 2 per cent decrease on a constant dollar basis, international comparable sales surged by 19 per cent, or 22 per cent on a constant dollar basis, reinforcing the company's global growth strategy.

Lululemon's gross profit for the quarter increased by 9 per cent to $1.4 billion, with a gross margin improvement of 80 basis points to 59.6 per cent. The company's income from operations also saw a substantial 13 per cent increase, reaching $540.2 million, which resulted in an operating margin of 22.8 per cent, up 110 basis points from the previous year.

Diluted earnings per share were reported at $3.15, a notable increase from $2.68 in the second quarter of FY23.

The company also expanded its retail footprint, opening 10 net new company-operated stores, bringing the total to 721 stores by the end of the quarter.

"In the second quarter, lululemon delivered revenue and earnings growth, with ongoing strength across our international business. In the US, our teams continue to optimise our product assortment and remain focused on driving forward our opportunities in the market. Looking ahead, we feel confident in the long runway in front of us as we execute on our Power of Three ×2 growth plan," said Calvin McDonald, chief executive officer.

Fibre2Fashion News Desk (DP)