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Lululemon hit $2 billion in revenue in its fiscal first quarter, helping the Vancouver-based athleisure brand beat Wall Street expectations — and even its own lofty predictions.
Sales rose by 24% over the previous period, buoyed by a 79% spike in revenue in China. The brand will keep capitalizing on growth there, as the majority of the 30-35 new stores it plans to open will be located there.
Full-year revenue is now expected to potentially reach $9.51 billion, an increase from previous predictions of as low as $9.31 billion. Lululemon stock is up over 10% since the earnings report.
There was no update on the state of Mirror, the at-home fitness equipment company Lululemon bought in 2020 for $500 million but is now considering selling.
The positive news for Lululemon builds on a strong run for the brand. In 2022, the company’s net revenue rose 30% to $8.1 billion, and the strong start to 2023 “shows the continued momentum in the business,” according to Lululemon CEO Calvin McDonald.
On the earnings call, McDonald highlighted the “top- and bottom-line results that exceeded our guidance.”
Lululemon’s success is impressive as competitors in the athletic apparel space continue to see mixed results. Nike posted a strong report in its most recent earnings period, while Adidas saw a slight dip.
