Lululemon has increased its store opening projections for the year and now plans to open 55 new stores.While many retail players are struggling, Lululemon reported stellar results for the second quarter, with revenue surging 18% compared to last year, reaching $2.2 billion. According to the company's press release, profit grew by 11%.
The profit growth was also in double digits: operating profit increased by 19%, while net profit rose by 18% to approximately $342 million. Gross profit increased by 23%, totaling $1.3 billion.
Lululemon has increased its store opening projections for the year and now plans to open 55 new stores by year-end, up from the previous estimate of around 50. Twenty-three of these stores are set to open in the third quarter, as Chief Financial Officer Meghan Frank reported during an analyst meeting.
"Against a peer earnings backdrop characterized by warnings of consumer softness and higher shrink, Lululemon once again posted an impressive beat-and-raise quarter, with revenue beating the high end of guidance by 2% on continued broad-based strength across channels, categories, and geographies," commented William Blair analysts led by Sharon Zackfia in an email.
The sportswear retail company noted sales growth across all categories: women's business increased by 16%, men's by 15%, and accessory sales surged by 44%. International sales continued to rise, with revenue increasing by 52%. The North American market also saw significant growth, with sales increasing by 11%.
The reopening of China has also boosted international numbers. However, unlike many luxury brands that have leaned heavily into international to make up for weak domestic sales, Lululemon is doing well at home as well as abroad.
Next year, the company plans to launch a men's footwear line and expand its presence on the European e-commerce site Zalando. The retail membership program launched about a year ago now boasts 12 million members.