Canada's Lululemon Athletica posts revenue growth of 28% in Q3 FY22

In Q3 FY22, Lululemon Athletica’s net revenue increased by 26 per cent in North America and by 41 per cent internationally, compared to Q3 FY21.

The company’s comparable store sales in Q3 FY22 increased 14 per cent, or 17 per cent on a constant dollar basis, compared to Q3 FY21. Direct-to-consumer net revenue increased 31 per cent, or 34 per cent on a constant dollar basis, Lululemon Athletica said in a press release.

Direct-to-consumer net revenue in the third quarter of FY22 represented 41 per cent of total net revenue, compared to 40 per cent for the third quarter of 2021.

In Q3 FY22, gross profit increased 25 per cent to $1 billion and gross margin decreased 130 basis points to 55.9 per cent, compared to Q3 FY21.

In the third quarter of fiscal 2022, the company’s income from operations increased 37 per cent to $352.4 million, compared to Q3 FY21. Adjusted income from operations increased 25 per cent. Operating margin increased 120 basis points to 19 per cent, while the adjusted operating margin decreased 40 basis points.

In Q3 FY22, Lululemon Athletica’s diluted earnings per share were $2, compared to $1.44 in the third quarter of 2021.

Lululemon Athletica opened 23 net new company-operated stores during the third quarter of fiscal 2022, ending with 623 stores.

For the fourth quarter of 2022, the company expects net revenue to be in the range of $2.605–$2.655 billion, representing a three-year compound annual growth rate of approximately 24 per cent. Diluted earnings per share are expected to be in the range of $4.20–$4.30 for the quarter.

For 2022, Lululemon Athletica expects net revenue to be in the range of $7.944–$7.994 billion, representing a three-year compound annual growth rate of approximately 26 per cent. Diluted earnings per share are expected to be in the range of $9.94–$10.04 for the year and, excluding the gain on the sale of an administrative office building, adjusted diluted earnings per share are expected to be in the range of $9.87–$9.97.

Fibre2Fashion News Desk (DP)