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International growth boosts Lululemon profits

Canadian activewear giant Lululemon has announced a 22% rise in gross profit to $421.7m (£249.32m) for the first quarter, ended 5 May. 

Revenues at the yoga retailer also shot up by 20% to $782.3m (£462.51m), driven by product innovation and international growth. 

Direct-to-consumer net revenue went up by 33% and represented 26.8% of total net revenue, compared to 24.3% for the same period in 2018.

The company ended the first quarter of 2019 with $576.2m (£340.6m) in cash, compared to $966.6m (£571.47m) the year before. Inventories increased 19% to $443m (£261.9m), up from $373.4m (£220.7m) in 2018. 

The company ended the quarter with 455 stores worldwide and 13 stores in the UK. 

Lululemon expects net revenue to grow between $825m (£487.7m) to $835m (£493.6m) in the second quarter of 2019, based on a total comparable sales increase in the low double digits on a constant dollar basis. 

Commenting on the results, CEO Calvin McDonald said: “Lululemon continues to see strong momentum across the entire business.

”I’m inspired by our teams who are executing at high levels, and I want to thank everyone across the globe for their passion and dedication to the brand. I look forward to the opportunities ahead of us, and delivering on our Power of Three five-year vision.”

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