Lululemon reported a significant increase in both sales and profit for its fiscal second quarter, driven by a remarkable 61% revenue spike in China. As a result, the athletic apparel retailer has raised its full-year guidance, now expecting higher sales and profits compared to previous estimates. Lululemon’s sales in North America grew by 11%, while international markets outside of North America experienced a remarkable 52% sales increase, with China leading the way.
The company’s finance chief noted the strong and healthy sales growth, despite China’s slowing economy. Lululemon’s ambitious growth plan remains on track, with a focus on expanding its brick-and-mortar presence, increasing men’s category sales, and boosting direct-to-consumer revenue. Meanwhile, the company continues to address inventory levels, with improvements seen in the second quarter. Overall, Lululemon’s performance exceeded Wall Street expectations and showcases its resilience in the current market.