Second quarter rise for Lululemon but law firm files suit
Canadian yogawear brand Lululemon Athletica has reported a 7% increase in second-quarter revenues to $2.4 billion.
Americas net revenue was flat at 1% but international revenue increased 29%.
Lululemon CEO Calvin McDonald said: "In the second quarter, Lululemon delivered revenue and earnings growth, with ongoing strength across our international business. In the US, our teams continue to optimise our product assortment and remain focused on driving forward our opportunities in the market. Looking ahead, we feel confident in the long runway in front of us as we execute on our Power of Three ×2 growth plan."
The Power of Three ×2 growth plan calls for a doubling of the business from 2021 net revenue of $6.25 billion to $12.5 billion by 2026. The key pillars are product innovation, consumer experience and market expansion and the growth strategy includes a plan to double men's, double e-commerce and quadruple international net revenue relative to 2021.
For 2024, the company expects net revenue to be in the range of $10.375 billion to $10.475 billion, representing growth of 8% to 9%.
However, despite official positivity, US law firm Kessler Topaz Meltzer & Check is filing a lawsuit, claiming the company knew recent sales would be flat but didn't make this clear to investors. It will file in the autumn.
