Lululemon’s “performance remained strong” for the second quarter of 2023

Activewear label Lululemon Athletica has announced financial results for the second quarter of fiscal 2023, revealing revenues were up by 18% to £1.75 billion ($2.2 billion), boosted by DTC sales.

For the second quarter of 2023, compared to the second quarter of 2022, Lululemon's financial results are as follows:

• Net revenues were up by 11% in North America and up by 52% internationally
• Total comparable sales increased 11%, or 13% on a constant dollar basis
• Store sales increased by 7%, or 9% on a constant dollar basis
• Direct-to-consumer net revenue increased by 15%, or 17% on a constant dollar basis
• Gross profit was up by 23% to £1 billion ($1.3 billion) and the gross margin increased by 230 basis points to 58.8%
• Diluted earnings per share were £2.13 ($2.68) compared to £1.79 ($2.26) in the second quarter of 2022. Adjusted diluted earnings per share were £1.75 ($2.20)

Calvin McDonald, Chief Executive Officer, commented: "Our Q2 results highlight the ongoing strength of the business amid a dynamic operating environment. I am proud of how our teams continue to deliver on our vision and offer an exciting pipeline of new products and experiences to our guests around the world. Our continued ability to gain market share and bring new customers into the brand illustrates the significant runway ahead for lululemon."

Meghan Frank, Chief Financial Officer, added: "Our performance remained strong in Q2 as both revenue and EPS exceeded our expectations. Our ongoing momentum is a reflection of our portfolio approach to growth, differentiated business model, and innovative product assortment. We are excited about our opportunities in the second half of the year and look forward to continuing delivering on our Power of Three ×2 growth plan."

Looking ahead, for the 2023 fiscal year, the company expects net revenue to be in the range of  £7.54 billion ($9.51 billion) to £7.59 billion ($9.57 billion), representing growth of 17% to 18%. Diluted earnings per share are expected to sit between £9.54 ($12.02) to £9.66 ($12.17) for the year.