Lululemon sportswear continues to surge

Lululemon Athletica second-quarter sales rose 25 per cent in the second quarter to the end of July, with comp-store sales up 20 per cent.

The Canadian activewear company reported net revenue of US$723.5 million and income from operations of $134.2 million, up 95 per cent year on year.

“We are very pleased with the consistent performance of our business,” said chairman Glenn Murphy.

The company ended the quarter with 415 stores and an inventory up 24 per cent to $392.7 million.

The solid result followed a 25 per cent increase in the first quarter when net revenue reached  $649.7 million, and widening margins delivered a 130 per cent increase in income to $104.3 million.

At the time, retail analyst and GlobalData MD Neil Saunders said the company was clearly outperforming the market by a “considerable degree”.

COO Stuart Haselden said the “great” second-quarter result was achieved across all parts of the business and early indications are it is continuing into the new quarter.

“This ongoing success positions us to achieve our 2020 goals and beyond. Above all, we want to thank our educators and teams around the world who make this possible.”

Lululemon Athletica’s incoming CEO Calvin McDonald, said he plans to build on the success. “We have an incredible growth trajectory in front of us given the strength of the brand and our people.”