Strong Q2 results, where total revenues grew 22 percent to $883.4 million and comparable sales rose 17 percent on a constant dollar basis, showed further gains in the company’s core mission to grow its core business by low-double digits, double its men’s business and quadruple its international revenues before the end of 2023.
During the period ended Aug. 4, LULU’s men’s business comps increased 27 percent, fueled by ongoing strength in tops, bottoms and shorts. Meanwhile, European sales rose 35 percent and revenues in APAC region grew 33 percent as revenues in China expanded 68 percent. Digital posted a 31 percent constant dollar comp increase as Q2 ecommerce revenues hit $218 million, equal to 25 percent of period revenue.
In North America, where new stores will open in New York City (23,000-sq. ft. on Fifth Ave, near Rockefeller Center) and Minneapolis in November, nearly all of Lululemon retail locations now have “Buy Online, Pick-Up In-Store” capability. The company continues to make investments in the region to fuel in-store and ecommerce traffic. Among them: The addition of new search and browse functionality on the brand’s ecommerce site and enhanced product detail pages. The company intends to open 15-20 retail North American stores in 2019. The brand recently expanded its membership program concept to a fourth city, Chicago, after opening a door in nearby Lincoln Park, IL, and will host its first sponsored 10K in San Diego in November.