Lululemon Athletica reported a 7 percent increase in revenues to USD 2.4 billion for the second quarter, thanks to surging sales once gain in its mainland China market.
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The Canadian activewear maker said international net revenue surged 29 percent, on the back of a 34 percent uptick in mainland China sales. The firm’s rest of the world revenues climbed 24 percent, while the Americas region inched forward just 1 percent.
International comparable sales, where company-operated stores have been open for 12 months of longer, increased 19 percent, again thanks to Mainland China comparable sales, grew 21 percent during the three months.
“In the second quarter, lululemon delivered revenue and earnings growth, with ongoing strength across our international business. In the U.S., our teams continue to optimize our product assortment and remain focused on driving forward our opportunities in the market,” said Calvin McDonald, chief executive officer, Lululemon Athletica.
“Looking ahead, we feel confident in the long runway in front of us as we execute on our Power of Three ×2 growth plan.”
For 2024, the company now expects net revenue to be in the range of USD 10.375 billion to USD 10.475 billion, representing growth of 8 percent to 9 percent. Diluted earnings per share are now expected to be in the range of USD 13.95 to USD 14.15 for the year. This assumes a tax rate of approximately 30 percent.
Earlier this year, Lululemon announced Sun Choe, former chief product officer, Lululemon had left the firm to take on the role of global brand president, Vans, effective late July.