Lululemon sales rise 18% to $2.2bn in Q2

Athletic wear brand Lululemon has reported an 18% rise in sales to $2.2bn (£1.74bn) in Q2 2023.

Gross profit was up 23% to $1.3bn (£1.03bn) and gross margin increased 230 basis points to 58.8%.

Additionally, income from operations increased 19% to $479.3m (£378.02m) and adjusted income from operations increased 23%.

Net revenue was up 11% in North America, and increased 52% internationally.

Total comparable sales also rose to 11%, or 13% and comparable store sales increased 7%, or 9%.

Meanwhile, direct to consumer net revenue increased 15%, or 17% on a constant dollar basis.

Its Q2 earnings per share also increased to $2.68 (£2.11) compared with $2.26 (£1.78) in the second quarter of 2022.

The company opened 10 net new company-operated stores during the second quarter, ending with 672 stores.

Looking ahead, it said that it expects net revenue for fiscal 2023 to be in the range of $9.51bn (£7.50bn) to $9.57bn (£7.55bn), representing growth of 17% to 18%.

Moreover, diluted earnings per share are expected to be in the range of $12.02 (£9.48) to $12.17 (£9.60) for the year.

Calvin McDonald, chief executive officer, said: “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.”

Meghan Frank, chief financial officer, added: “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.”