Sports fashion and lifestyle company Lululemon Athletica Inc. of Vancouver, Canada, reports third-quarter net sales of $1.9 billion. This means that sales have increased by 28 percent compared to the same period of the previous year.
Gross profit increased 25 percent to $1.0 billion and gross margin decreased 130 basis points to 55.9 percent.
On a constant dollar basis, comparable store sales increased 17 percent and direct selling net sales increased 34 percent. Overall, Lululemon opened 23 new stores during the quarter, including its first stores in Spain. In total, the company counted 623 stores worldwide at the end of the third quarter.
Growth was driven abroad. Internationally, Lululemon was able to grow by 41 percent, in the home market of North America, net sales grew by 26 percent.
Compound annual growth rate of 27 percent
The company can thus look back on several years of strong growth. Since the third quarter of 2019 and thus before the pandemic, net sales increased by $940.8 million, or 103 percent, for a compound annual growth rate of 27 percent.
For the fourth quarter, Lululemon expects net sales to be approximately $2.6 billion and for full year 2022 between $7.94 billion and $7.99 billion.
Meghan Frank, Chief Financial Officer: “We are proud to have delivered another quarter of strong revenue and earnings growth despite a continued dynamic business environment. These results demonstrate the strength and differentiation of our comprehensive business model and position us well to continue to create value for our stakeholders. We look forward to a strong end to our fiscal year.”