Canada's Lululemon Athletica's revenue rises 18% to $2.2 billion in Q2

01 Sep '23

3 min read

Pic: rblfmr / Shutterstock

Insights

In Q2 FY23, Lululemon Athletica has reported a net revenue increase of 18 per cent to $2.2 billion (or 20 per cent on a constant dollar basis).
North American net revenue grew by 11 per cent, while international revenue saw a substantial 52 per cent increase.
Comparable sales rose by 11 per cent, with 7 per cent growth in comparable store sales.

In the second quarter (Q2) of fiscal 2023 (FY23), the net revenue of Lululemon Athletica has increased 18 per cent to $2.2 billion, or increased 20 per cent on a constant dollar basis. Net revenue grew 11 per cent in North America, and increased 52 per cent internationally in the second quarter.

The company’s total comparable sales went up 11 per cent in the second quarter, or 13 per cent on a constant dollar basis. Comparable store sales grew 7 per cent, or 9 per cent on a constant dollar basis.

"Our Q2 results highlight the ongoing strength of the business amid a dynamic operating environment. I am proud of how our teams continue to deliver on our vision and offer an exciting pipeline of new products and experiences to our guests around the world. Our continued ability to gain market share and bring new customers into the brand illustrates the significant runway ahead for Lululemon,” Calvin McDonald, chief executive officer, said.

"Our performance remained strong in Q2 as both revenue and EPS exceeded our expectations. Our ongoing momentum is a reflection of our portfolio approach to growth, differentiated business model, and innovative product assortment. We are excited about our opportunities in the second half of the year and look forward to continuing delivering on our Power of Three ×2 growth plan,” Meghan Frank, chief financial officer, said.

The Company's Power of Three ×2 growth plan calls for a doubling of the business from 2021 net revenue of $6.25 billion to $12.5 billion by 2026. The key pillars of the plan are product innovation, guest experience, and market expansion and the growth strategy includes a plan to double men's, double direct to consumer, and quadruple international net revenue relative to 2021.

For the third quarter of 2023, the company expects net revenue to be in the range of $2.165 billion to $2.190 billion, representing growth of 17 per cent to 18 per cent. Diluted earnings per share are expected to be in the range of $2.23 to $2.28 for the quarter. This assumes a tax rate of approximately 30.5 per cent, the company said in a press release.

For 2023, the company expects net revenue to be in the range of $9.510 billion to $9.570 billion, representing growth of 17 per cent to 18 per cent. Diluted earnings per share are expected to be in the range of $12.02 to $12.17 for the year. This assumes a tax rate of approximately 30 per cent.

Fibre2Fashion News Desk (RR)

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