Lululemon reports strong Q1 results with positive momentum

Athletic apparel company Lululemon has released its first-quarter results, reporting a boost in net revenue of 10 per cent to $2.2 billion.

Calvin McDonald, CEO of Lululemon, said the first quarter saw strong momentum and growth in international markets.

“We are pleased by the progress we are making to optimise our US product assortment,” said McDonald.

The Canadian athleisurewear specialist’a gross profit increased by 11 per cent to $1.3 billion, accompanied by a 20 basis point increase in gross margin to 57.7 per cent. Its international net revenue increased by 35 per cent, while America’s revenue grew by 3 per cent.

Additionally, the company repurchased 800,000 shares of its common stock for $296.9 million. It expects continued recovery, with the board approving a $1 billion increase to the company’s stock repurchase program.

Meghan Frank, CFO, added that the first-quarter results were ahead of expectations as the business continues to make strategic investments. 

“We are energised by the opportunities in front of us and believe we are well-positioned to drive sustainable, long-term growth,” said Frank.

Lululemon anticipates net revenue for the second quarter to be between $2.4 billion and $2.42 billion, indicating growth of 9 per cent to 10 percent.

For the rest of the year, it expects net revenue to be between $10.7 billion and $10.8 billion, representing a growth of 11 per cent to 12 per cent. 

The brand concluded the first quarter of this year with 711 company-operated stores.

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