The Canadian sportswear group posted a 7.34% revenue increase in the first quarter, despite a 2.13% decline in net profit.
Canadian athleisure giant Lululemon ended the first quarter on a strong note but warned of a potentially challenging road ahead. CEO Calvin McDonald expressed concerns over weakening consumer sentiment in the United States, noting increased caution in spending. While the company has lowered its second-quarter guidance, it continues to uphold its full-year outlook.
In Q1, Lululemon reported revenue of $2.37 billion, reflecting a 7.34% increase from $2.208 billion in the same period last year. Gross profit rose 8.86% to $1.388 billion, though net income dipped 2.13% to $314 million.
Despite the CEO’s satisfaction with overall performance, he highlighted the need to offset softening U.S. demand by pursuing international growth. As part of this strategy, the company plans to expand into new and emerging markets.
By geography, U.S. sales rose 2%, Canada increased 4%, and Mexico remained flat. In contrast, China recorded a 21% surge, while sales in other international markets grew by 16%.
As of the end of the quarter, Lululemon operated 770 stores worldwide. In terms of product performance, women’s apparel sales climbed 7%, while men’s apparel and accessories both posted 8% growth.
