Canadian athletic apparel retailer Lululemon athletica has reported growth across channels, categories and markets including the US in the first quarter (Q1) of fiscal 2025 (FY25), which concluded on 4 May.
The company saw a 7% increase in net revenue to $2.4bn – an 8% rise on a constant dollar basis. This growth was particularly strong internationally, with net revenue surging 19%, or 20% on a constant dollar basis.
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In the Americas, net revenue grew 3%, or 4% on a constant dollar basis.
Comparable sales across the company rose 1%, despite a 2% decrease in the Americas, which adjusted to a 1% drop on a constant dollar basis. Conversely, international comparable sales jumped 6%, or 7% on a constant dollar basis.
The company’s gross profit saw an 8% increase to $1.4bn, with gross margin expanding by 60 basis points to 58.3%.
Income from operations showed a modest 1% rise to $438.6m, with operating margin declining by 110 basis points to 18.5%.
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By GlobalDataThe effective income tax rate for the quarter was slightly higher at 30.2%, compared to 29.5% in the same quarter of the previous year.
Lululemon athletica CEO Calvin McDonald stated: “In the first quarter, we achieved growth across channels, categories and markets including the US, reflecting the continued strength and agility of our business model. Guests responded well to the product innovations, newness and brand activations we delivered around the world. As we navigate the dynamic macroenvironment, we intend to leverage our strong financial position and competitive advantages to play offence, while we continue to invest in the growth opportunities in front of us.”
Diluted earnings per share (EPS) for the quarter were reported at $2.60, up from $2.54 in the Q1 2024.
Lululemon added three net new company-operated stores, bringing the total to 770.
In the second quarter (Q2) of 2025, the brand expects net revenue to range between $2.54bn and $2.56bn – growth of 7% to 8%.
For the full year 2025, the company maintains its net revenue forecast at between $11.15bn and $11.30bn, representing a growth of 5% to 7%, or 7% to 8% when excluding the 53rd week of 2024. Diluted EPS is expected to be between $14.58 and $14.78.
Lululemon athletica chief financial officer Meghan Frank stated: “Looking ahead, we remain focused on our strategy and continue to operate with discipline as we drive the business forward. We are grateful to our teams around the world who are enabling us to deliver these consistent results.”
