The introduction of new categories allowed Lululemon to significantly increase sales.
Lululemon's second-quarter revenues far exceeded analysts' expectations, thanks to product line expansion and smart marketing. North American revenue rose by 21%. The company's profit rose by 22% to $883.35 million ($723.5 million a year ago) and beat analysts' expectations of around $846.83 million. At the same time, the company plans to quadruple its international revenue by 2023.
The company also improved its full-year guidance. CEO Calvin McDonald said he sees "an impressive runway" ahead as Lululemon continues to push into new categories.
Menswear sales, which were a key growth driver, rose 35%, outpacing womenswear sales. Contributed to the growth of sales and the expansion of digital business. Now the buyer can order what they want on the Lululemon website, and then pick it up at almost any company store. Previously, this option was available only in some retail outlets. The company said it expects online sales of menswear and teens to double.
Earlier this summer, the company opened its largest shop in chicago, and plans to continue opening more and more outlets, of which there are now 460. This is part of a growth strategy that also includes the introduction of new categories, such as body care products.
After the company announced record results, its shares rose in price by 5%. At the same time, Lululemon shares have risen by more than 54% this year.