Lululemon lifts FY22 outlook as profits hit $7.86bn

Lululemon has raised its FY22 outlook, with revenues expected to be in the range of $7.86bn (£6.8bn) to $7.94bn (£6.87bn), representing a three-year annual growth rate of 26%.

Revenues for Q3 are also expected to be in the range of $1.78bn (£1.54bn) to $1.8bn (£1.56bn), representing a three-year annual growth rate of 25%

The announcement comes as Lululemon reported its gross profits increased 25% to $1.1bn (£951.8m) for Q2 FY22.

Revenues also jumped 29% to $1.9bn (£1.6bn), with a 28% rise in North America and 35% growth internationally. Additionally, income from operations increased 38% to $401.2m (£347.15m).

Compared to pre-Covid levels, revenues surged by $1bn (£865.3m) (112%), representing a three-year compound annual growth rate of 28%.

Overall, Q2 sales increased 23% and comparable store sales increased 16%. Direct to consumer revenues grew 30%, representing 42% of total net revenue.

Calvin McDonald, CEO, said: “The momentum in our business continued in the second quarter, fueled by strong guest response to our product innovations, community activations, and omni experience.

“As we look ahead, we’re excited about our ability to successfully deliver against our Power of Three ×2 growth plan and create ongoing value for all our stakeholders.”

Meghan Frank, CFO, added: “Despite the challenges around us in the macro-environment, guest traffic in our stores and on our e-commerce sites remains robust, which speaks to the strength of our multidimensional operating model. I am pleased with our start to the third quarter and believe we are well positioned for the fall and holiday seasons.”