Reporting its results for the first three months of its financial year, Vancouver-based Lululemon Athletica said net sales amounted to US$1.6bn, up from $1.2bn a year earlier.
Net revenue increased 32% in North America and by 29% internationally, while total comparable sales improved by 28% or 29% on a constant dollar basis. Comparable store sales increased 24%.
Direct to consumer net revenue was up 32%, or 33% on a constant dollar basis, and represented 45% of total net revenue compared to 44% for the first quarter of 2021.
Net income, meanwhile, amounted to $190m, compared to $144.96m in the prior-year period. Gross margin decreased 320 basis points to 53.9%.
“In the first quarter of 2022, continued momentum in the business enabled us to achieve a strong start to the year,” said CEO Calvin McDonald. “These results provide a solid foundation as we begin our next five-year journey and deliver against our new Power of Three ×2 growth plan. I want to thank our teams around the world for remaining agile and continuing to execute at a high level to achieve our goals, while successfully navigating the challenges within the macro environment. We look forward to all that lies ahead for Lululemon as we continue to grow the brand.”
Looking ahead, for the second quarter of 2022 ,Lululemon expects net revenue to be in the range of $1.75-$1.78bn, representing a three-year compound annual growth rate of approximately 26%.
For 2022, the company expects net revenue to be in the range of $7.61-$7.71bn, representing a three-year compound annual growth rate of 24% to 25%. This compares to previous guidance in March of fiscal 2022 net revenue to be in the range of $7.49-$7.62bn.
CFO Meghan Frank added: “Our teams continue to deliver a strong financial performance while navigating the ongoing impacts of Covid, supply chain disruptions and inflationary pressures. While we are not immune to these challenges, our omni operating model, balanced growth strategy, and unique approach toward innovation enable the positive results we are reporting today and anticipate for the full year.”
In April, Lululemon revealed plans to double men’s and digital revenues and quadruple international revenues relative to 2021 as part of its new five-year growth plan.