Exceeding expectations in the company’s latest earnings report, Lululemon is projecting a record fiscal year.
The athletic apparel retailer generated $1.6 billion in revenue in Q1 2022 — a 32% increase year-over-year — surpassing analysts’ estimates of $1.5 billion in revenue for the quarter.
- Direct-to-consumer sales made up 45% of total revenue in Q1 2022.
- Total comparable sales grew by 28% compared to the same period last year.
- Lululemon opened five new brick-and-mortar locations in Q1, bringing its total to 579.
Lululemon also expects to outpace its previous full-year revenue guidance. The Canadian company projects revenue to range between a record $7.6 billion and $7.7 billion in FY2022.
It previously estimated full-year revenue in 2022 to be between $7.5 billion and $7.6 billion.
Growing Business
Lululemon is making strides to compete with top athleticwear brands like Adidas and Nike. The retailer has been expanding its reach by leaning into footwear specifically engineered for women.
The retailer launched The Blissfeel — its first women’s running shoe — in March, which retails for $148. Lululemon will unveil men’s footwear in 2023 as part of a previously announced plan to grow its menswear business and presence in the international market.
By 2026, Lululemon plans to increase men’s apparel revenue to twice the amount it garnered in 2021. The retailer expects international market revenue to quadruple in that same period.
