Lululemon raises full-year guidance after strong growth in China - PingWest

Lululemon raises full-year guidance after strong growth in China

Lululemon raises full-year guidance after strong growth in China

September 1, 2023 8:15 pm

Lululemon raised its full-year guidance on Thursday following a robust performance in its fiscal second quarter. The company reported an impressive 18% increase in both sales and profit, primarily driven by a remarkable 61% surge in revenue from the Chinese market.

Lululemon's revenue for the second quarter increased to $2.21 billion, representing approximately an 18% growth compared to the same period last year when it was $1.87 billion. The net profit was $341.6 million, compared to $289.5 million in the same period last year, marking an 18% year-over-year increase.

Breaking it down by region, the international market grew by 52%, primarily driven by China, while North America experienced an 11% growth.

Due to the excellent performance in the Chinese market, Lululemon has raised its full-year performance expectations after releasing its financial report. The company now expects its sales for the current fiscal year to be between $9.51 billion and $9.57 billion, up from the previous range of $9.44 billion to $9.51 billion. Currently, Lululemon operates a total of 107 stores in mainland China, and out of the 35 new stores opened in the current fiscal year, "the majority will also be located in China,” the athletic apparel retailer said in a statement.

Lululemon is pursuing an ambitious growth strategy known as the "Power of Three x2," aiming to double its sales to $12.5 billion by 2026 from its 2021 revenue of $6.25 billion. To achieve this goal, the company is actively expanding its physical store presence and intends to double its revenue from both the men's segment and direct-to-consumer channels.

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