Lululemon revenues hit $2bn in Q1

Lululemon revenues have increased by 24% to $2bn (£1.6bn) during the first quarter of 2023, as sales increased 17% on a constant dollar basis in North America and leaped 60% internationally. 

The group’s gross profit also increased 32% to $1.2bn (£0.9bn), while its gross margin rose 57.5% during the period. 

In addition, the retailer’s direct to consumer net revenue increased 16%, representing 42% of total net revenue compared with 45% for the first quarter of 2022.

As a result, income from operations increased 54% to $401.4m (£320.3m) during Q1. 

The athletic clothing retailer also opened seven new company-operated stores during this period, which brings the total to 662 stores. 

Calvin McDonald, CEO of Lululemon, said: “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 growth plan.”

Meghan Frank, CFO of Lululemon, added: “Our Q1 results were strong as guests responded well to our product offering in all our markets across the globe. A meaningful acceleration in our China sales trend, coupled with lower air freight, contributed to our better than planned financial performance. 

“We are pleased with our momentum heading into the second quarter and for the full year as reflected in our revised outlook for FY23.”