lululemon athletica reports 29% revenue growth in Q2 2022

North American sportswear retailer lululemon athletica reported revenue of $1.9 billion for the second quarter (Q2) of fiscal 2022 (FY22), up 29% from the same period of fiscal year 2021 (FY21).

The company’s net sales increased 28% and 35% in North America and worldwide, respectively.

Its total comparable sales for the second quarter increased 23%, while its comparable store sales increased 16%.

Lululemon’s direct-to-consumer net revenue increased 30% and accounted for 42% of its total net revenue, compared to 41% in the second quarter of 2021.

The retailer reported $401.2 million in revenue from operations, up 38% from a year earlier, and a 31% increase in adjusted operating income.

Its operating margin increased by 140 basis points (bps) to 21.5%, while its adjusted operating margin also increased by 30bps.

Diluted earnings per share (EPS) for lululemon fell from $1.59 in Q2 2021 to $2.26 in Q2 2022.

The retailer opened 21 company-operated stores during the quarter, bringing its total store network to 600.

Lululemon Athletica CEO Calvin McDonald said, “Our business momentum continued in the second quarter, fueled by strong customer response to our product innovations, community activations and omni experience.

“I would like to express my gratitude to our teams around the world for their continued dedication and enthusiasm for our brand, which has enabled us to generate this high level of performance.

“Looking ahead, we are excited about our ability to successfully deliver on our Power of Three×2 growth plan and create continued value for all of our stakeholders.”

For the third quarter (Q3) of FY22, lululemon Athletica expects revenue to be between $1.780 billion and $1.805 billion and forecasts EPS between 1.90 and 1, $95.

The retailer forecasts annual net sales of between $7.86 billion and $7.94 billion.