Lululemon revenues rise by 19% in Q3

Lululemon has welcomed a strong third quarter of trading that exceeded expectations, as revenues rose by 19% to $2.2bn (£1.75bn), and gross profit increased 21% to $1.3bn (£1bn).

Over the period, North America revenues rose by 12% while international revenues soared 49%.

Overall, total comparable sales increased 13%, with comparable store sales up by 9%, and direct to consumer sales increasing 18%.

The company also opened 14 net new company-operated stores during the third quarter, ending the period with 686 stores.

Lululemon also announced a new partnership with Peloton that will see it provide digital fitness content, meaning it will no longer make content for the Lululemon Studio Mirror.

Looking ahead, the group said it was pleased with its early performance ahead of the holiday season, and now expects fourth quarter revenues to grow by 13% to 14%, and for full-year revenues to grow by 18%.

CEO Calvin McDonald said: “This was another strong quarter for lululemon as our innovative product offerings and community activations continued to powerfully resonate with our guests globally. 

“As we enter the holiday season, we are pleased with our early performance and are well-positioned to deliver for our guests in the fourth quarter. I am energised by the significant opportunities ahead, and would like to thank our incredible teams around the world for their continued passion and commitment to our brand.”

CFO Meghan Frank added: “Our third quarter performance, which exceeded our expectations on the top- and bottom-line, reflects the ongoing strength of our business model and our teams’ ability to successfully execute at a high level amid an uncertain macro environment. 

“As we look to the end of our fiscal year and into 2024, we remain focused on driving long-term growth and creating value for all our stakeholders.”