The Canadian sportswear supplier Lululemon Athletica Inc. closed the first quarter of the 2022/23 financial year with significant growth in sales and earnings. In view of the surprisingly good figures in the first three months, the company raised its forecasts for the full year on Thursday evening. Lululemon has had a “strong start to the year” thanks to “continued momentum” in business activities, CEO Calvin McDonald said in a statement. The company has thus laid a “solid foundation” for the new five-year growth plan, according to McDonald.
In the months of February to April, sales reached a level of 1.61 billion US dollars (1.50 billion euros). It thus exceeded the level of the same quarter of the previous year by 32 percent. In North America, revenues increased by 32 percent and in the international business they increased by 29 percent.
Thanks to the strong growth in sales, Lululemon was also able to improve earnings significantly: Operating profit was $260.3 million, up 34 percent year-on-year. Adjusted for special effects, the operating result increased by 29 percent. Reported net income grew 31 percent to $190.0 million (€176.8 million).
CFO Meghan Frank highlighted that the significant gains have been achieved in adverse conditions: “Our teams continue to deliver strong financial results while managing the ongoing impact of Covid-19, supply chain disruptions and inflationary pressures,” she said in a statement . “While we are not immune to these challenges, our holistic business model, balanced growth strategy and unique approach to innovation enable the positive numbers we have now announced and expect for the full year.”
After the successful start, the company set itself higher goals for the current year: It now forecasts sales growth of 24 to 25 percent to 7.610 to 7.710 billion US dollars. Diluted earnings per share are now expected to reach $9.42 to $9.57. Lululemon closed the past fiscal year with sales of $6.26 billion and diluted earnings per share of $7.49.