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Lululemon revenue up despite supply chain and inflation challenges

Sophie Smith
06 June 2022

Lululemon has released its financial results for the first quarter of 2022, revealing a 32% increase in revenue to £1.2 billion ($1.6 billion).

For Q1 2022, Lululemon shared the following results against Q1 2021:

• Revenue increased 29% internationally
• Direct-to-consumer rose 32%, representing 45% of total net revenue
• Gross profit increased 24% to £692 million ($870.4 million)
Gross margin decreased 320 basis points to 53.9%

Looking ahead, the company expects net revenue to be in the range of £1.39 billion ($1.75 billion) to £1.4 billion ($1.76 billion) for the second quarter of 2022. For FY22, Lululemon expects net revenue to be in the range of £6.05 billion ($7.61 billion) to £6.13 billion ($7.71 billion), representing a three-year compound annual growth rate of 24% to 25%.

Calvin McDonald, CEO of Lululemon, said: "In the first quarter of 2022, continued momentum in the business enabled us to achieve a strong start to the year. These results provide a solid foundation as we begin our next five-year journey and deliver against our new Power of Three ×2 growth plan. We look forward to all that lies ahead for Lululemon as we continue to grow the brand."

Meghan Frank, CFO at Lululemon, added: "Our teams continue to deliver strong financial performance while navigating the ongoing impacts of COVID-19, supply chain disruptions and inflationary pressures. While we are not immune to these challenges, our omni operating model, balanced growth strategy and unique approach toward innovation enable the positive results we are reporting today and anticipate for the full year."


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