Global athleisure brand Lululemon disclosed its financial results for the second quarter of fiscal 2023, reporting a notable 18 percent growth in net revenue to USD2.2 billion, or a 20 percent increase on a constant dollar basis.
Net revenue for the Vancouver-founded company increased 11 percent in North America and 52 percent internationally. The second quarter saw Lululemon open nine new company-operated stores in Asia Pacific, where it plans to enter four new markets in the coming five years, and one new store in Europe.
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Company-operated store revenue reached USD1.1 billion, accounting for 50 percent of the total net revenue. Comparable store sales witnessed a growth of 7 percent or 9 percent on a constant dollar basis, primarily driven by increased store traffic. At the end of Q2 2023 Lululemon had 672 company-operated stores, compared to 600 in Q2 2022.
“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 of Lululemon, said in a statement.
Looking ahead, Lululemon has set its sights on doubling the size of its business by 2026, from its 2021 net revenue of USD6.25 billion to USD12.5 billion. To accomplish this, Lululemon will look to the success of its ‘Power of Three ×2’ strategy, anchored by continued growth in three pillars: product innovation, guest experience, and market expansion. The strategy encompasses doubling its men’s product offerings and direct-to-consumer sales in company-operated stores, and quadrupling international net revenue.
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In Southeast Asia, Lululemon partnered with leading e-commerce platform Lazada to expand its reach in early 2023. Lululemon also entered Thailand for the first time in July with a new store in Central World mall in Bangkok. The opening marked the brand’s 100th store in the Asia Pacific region.
“As a brand that stands for wellbeing, we’re excited to launch in Thailand where balance is an intrinsic part of daily life and people’s passion for active lifestyles is growing,” said Gareth Pope, senior vice president for APAC. “With the opening of our first store in Bangkok, we look forward to connecting with Thai guests and fostering a vibrant community that aligns with our core values, helping people elevate their potential and feel their best.”