Reporting its results for the second quarter, Lululemon said net revenue increased 28% in North America and by 35% internationally. Total comparable sales went up by 23%, or 25% on a constant dollar basis.
Comparable store sales grew 16%, or 18% on a constant dollar basis, while direct-to-consumer net revenue increased 30%, or 32% on a constant dollar basis. Direct-to-consumer net revenue represented 42% of total net revenue compared to 41% for the second quarter of 2021.
Net income for the period amounted to $289.5m, compared to $208.1m last time. Gross margin decreased 160 basis points to 56.5%.
CEO Calvin McDonald said: “The momentum in our business continued in the second quarter, fueled by strong guest response to our product innovations, community activations, and omni experience.
“As we look ahead, we’re excited about our ability to successfully deliver against our Power of Three ×2 growth plan and create ongoing value for all our stakeholders.”
For 2022, Lululemon now expects net revenue to be in the range of $7.87-$7.94bn, representing a three-year compound annual growth rate of approximately 26%. This compares to previous guidance in June of $7.61-$7.71bn, representing a three-year compound annual growth rate of 24-25%.
CFO Meghan Frank added: “Our teams continue to execute at a high level, which is driving our strong financial and business performance. Despite the challenges around us in the macro-environment, guest traffic in our stores and on our e-commerce sites remains robust, which speaks to the strength of our multi-dimensional operating model. I am pleased with our start to the third quarter and believe we are well positioned for the fall and holiday seasons.”