Lululemon Athletica said net revenue increased 10 percent to USD 2.2 billion for the first quarter, thanks to surging sales in mainland China.
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International sales increased 35 percent for the quarter ending April 28, on the back of a 45 percent uptick in sales in mainland China. On a comparable basis, international sales lifted 25 percent, with mainland China growing Locally, sales in the Americas inched forward 3 percent, or were flat on a comparable basis.
The activewear company said income from operations increased 8 percent to USD 432.6 million, and ended the quarter with 711 company-operated stores.
“In the first quarter, we saw strong momentum in our international markets, demonstrating how our brand continues to resonate around the world,” said Calvin McDonald, chief executive officer, Lululemon.
“Guests responded well to our product innovations across categories, and we are pleased by the progress we are making to optimize our U.S. product assortment. Looking ahead, we continue to have a significant runway for growth and are confident in our team’s ability to powerfully deliver for our guests in 2024 and beyond.”
For the second quarter, the company said it expects revenue to be in the range of USD 2.4 billion to USD 2.42 billion, representing growth of 9 percent to 10 percent. Diluted earnings per share are expected to be in the range of USD 2.92 to USD 2.97 for the quarter.
For 2024, the company still expects revenue to be in the range of USD 10.7 billion to USD 10.8 billion, up 11 percent to 12 percent. Diluted earnings per share are now expected to be in the range of USD 14.27 to USD 14.47 for the year, said the Canadian firm.
The update comes on the back of news that Sun Choe, former chief product officer, Lululemon has left the firm to take on the role of global brand president, Vans, effective late July.