Apparel and footwear retailer Lululemon Athletica has announced a 7% increase in net revenue for the second quarter (Q2) of the fiscal year 2024 (FY24), reaching $2.37bn, up from $2.20bn in Q2 FY23.
The retailer’s net income for the quarter stood at $392.92m, up from $341.60m in Q2 FY23.
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Its diluted earnings per share (EPS) also saw an increase from $2.68 to $3.15 in Q2 FY24.
During the quarter ending 28 July 2024, lululemon athletica’s income from operations increased 13% to $540.2m, while operating margin expanded by 110 basis points to 22.8%.
The company’s gross profit for the quarter was reported at $1.41bn, a 9% increase from $1.29bn in Q2 FY23.
Regionally, net revenue in the Americas saw a modest 1% increase while international net revenue jumped by 29%.
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By GlobalDataDuring the quarter, lululemon athletica expanded its physical presence, opening ten new company-operated stores and bringing the total count to 721 stores.
lululemon athletica CEO 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.”
The Power of Three ×2 growth plan aims to increase net revenue to $12.5bn by 2026 from $6.25bn in 2021.
In the first two quarters, the company recorded $4.57bn net revenue, gross profit of $2.68bn and net income of $714.34m.
The company forecasts net revenue for Q3 FY24 to be between $2.340bn and $2.365bn, indicating a growth of 6% to 7%.
It expects diluted EPS between $2.68 and $2.73.
lululemon athletica also updated its outlook for the full year of 2024, with revenue expected to grow between $10.375bn and $10.475bn, representing 8% to 9% growth.
The company anticipates diluted EPS to be between $13.95 and $14.15 for the year.
In May 2024, lululemon athletica announced strategic organisational changes and implemented a more integrated structure to facilitate growth.
