Lululemon revenue and profits increase driven by boost in international sales

In a trading update for the second quarter of the year, the athleisurewear brand reported a 7% increase in total sales to $2.4bn (£1.83bn).

Gross profit increased to $1.4bn (£1.07bn), up 9% compared with this time last year.

Total sales in North America increased by 1% while like-for-like sales in the region decreased by 3% during the period.

The retailer’s total international sales, which include mainland China and other markets, saw a 29% increase while like-for-like sales increased by 19%.

Lululemon, which recently opened a new flagship store in London’s Covent Garden, said it is set to open 10 net new company-operated stores during the second quarter, ending with 721 stores.

Chief executive Calvin McDonald said: “In the second quarter, Lululemon delivered revenue and earnings growth, with ongoing strength across our international business. In the US, our teams continue to optimise our product assortment and remain focused on driving forward our opportunities in the market.

“Looking ahead, we feel confident in the long runway in front of us as we execute on our Power of Three ×2 growth plan.”

Chief financial officer Meghan Frank said: “Earnings per share exceeded our expectations in the second quarter, driven by better-than-expected gross margin expansion and disciplined execution.

“As we enter the back half of the year, we remain focused on executing on our near-term priorities, while strategically investing for long-term growth. I would like to thank our teams around the world for their commitment to Lululemon.”