Lululemon Q1 revenue boosted by international sales

Athleisure brand Lululemon has reported a 24% increase in net revenue to £1.2 billion ($2 billion) for the first quarter of FY23.

Net revenue increased 17% in North America and increased 60% internationally.

Direct-to-consumer net revenue grew 16%, representing 42% of total net revenue compared to 45% in the first quarter of 2022.

Gross profit increased 32% to £713 million ($1.2 billion), whilst gross margin was up 360 basis points to 57.5%.

Lululemon opened seven new company-operated stores during the first quarter, ending with 662 stores.

Looking ahead, the brand expects second quarter net revenue to be in the range of £1.27-1.29 billion ($2.14-2.17 billion), representing growth of 15%.

For 2023, Lululemon anticipates net revenue to rise 17% in the range of £5.61-5.565 billion ($9.44-9.51 billion).

Calvin McDonald, CEO of Lululemon, said: "We are pleased with our solid start to the year, delivering strong financial performance and continued momentum.

"Our results reflect the strength of our guest relationships, our innovative products and how our brand resonates across the globe.

"This year we celebrate our 25th anniversary, and our community-based model remains one of our biggest competitive advantages. We are excited for the future and remain on track to deliver on our Power of Three ×2 growth plan."

Lululemon’s Power of Three ×2 growth plan calls for a doubling of the business from 2021 net revenue of $6.25 billion to $12.5 billion by 2026.The key pillars of the plan are product innovation, guest experience and market expansion.