Lululemon Athletica Inc. has a mixed second quarter. The company announced an increase in net sales by seven percent to $ 2.5 billion (2.14 billion euros). However, this increase is mainly due to strong international growth.
The business results of the sporting goods group in the United States remained behind the expectations. Sales in North and South America only rose by one percent. The area -adjusted sales in the region decreased by four percent. In contrast, international sales rose by 22 percent. The international sales rose around the sales area by 15 percent.
Disappointed home market
According to CEO Calvin McDonald, the company is ‘disappointed’ from the US performance. “We have analyzed the causes of our below -average performance. We continue to take the necessary measures to strengthen our mix of goods and speed up our business,” he said.
Lululemon’s gross profit rose five percent to $ 1.5 billion. However, the gross margin fell by 110 basis points to 58.5 percent. The operating result also decreased by three percent to $ 523.8 million. The diluted profit per share was $ 3.10. In the comparison quarter of the previous year, it was $ 3.15.
In the course of the quarter, the company bought back 1.1 million of its shares for $ 278.5 million. At the end of the quarter, Lululemon ran 784 branches after 14 new locations were opened.
Lululemon corrects annual outlook
Lululemon also pointed out that it is confronted with ‘industry -wide challenges’, ‘including higher customs sets’. As a result, the company has adapted its outlook for the overall year.
For the entire 2025 financial year, the company is now forecasting sales between $ 10.85 billion and $ eleven billion. The expected growth is therefore between 2 to 4 percent. Before that, the company expected sales of $ 11.15 to $ 11.3 billion and growth between 5 to 7 percent.
The diluted profit per share should be between $ 12.77 and $ 12.97. Previously, $ 14.58 to $ 14.78 per share was forecast.
For the third quarter, Lululemon expects sales between $ 2.47 billion and $ 2.50 billion.
This article was used with digital tools translated.
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