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For the first quarter of FY ’23, athletic wear company Lululemon reported a 24 per cent increase in net revenue to £ 1.2 billion (US $ 2 billion). Internationally and in North America, net revenue rose by 60 per cent and 17 per cent, respectively. In comparison to the first quarter of 2022, direct-to-consumer net revenue increased by 16 per cent and now accounts for 42 per cent of overall net revenue.
While gross margin improved 360 basis points to 57.5 per cent, gross profit rose 32 per cent to £ 713 million (US $ 1.2 billion). During the first quarter, Lululemon added seven additional company-operated stores, bringing the total to 662.
The company anticipates second-quarter net revenue to increase by 15 per cent and be in the region of £ 1.27-1.29 billion (US $ 2.14-2.17 billion). Lululemon projects a 17 per cent increase in net revenue for 2023, with estimates ranging from £ 5.61-5.565 billion (US $ 9.44-9.51 billion).
Calvin McDonald, CEO of Lululemon, said: “We are pleased with our solid start to the year, delivering strong financial performance and continued momentum.
According to Lululemon’s Power of Three ×2 growth strategy, the company’s net revenues should double from US $ 6.25 billion in 2021 to US $ 12.5 billion in 2026. Product innovation, guest experience, and market expansion serve as the plan’s main cornerstones.
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