Lululemon’s brand strength has been contributed to its strong second quarter financial results, with sales surging 13 percent even as the athleisurewear hype cools down.
The Canadian owned company saw both total and comparable sales surging ahead by 13 per cent and 7 per cent, respectively. Online sales surged 30 per cent.
Despite the great sales numbers, a slight disappointment comes from the bottom line, where operating margin and net income ($48.7 million) both fell. Some of this was down to asset impairment and resulting costs, but even when this is factored out the results were still weaker than the prior year.
Among Lululemon’s male shoppers, average spend is up as is the average number of products purchased. Some of this is the result of a much more comprehensive range of men’s product, especially beyond bottoms, which is the traditional entry product to the brand.
Lululemon tests the durabilty of products before introducing them to market.
Net revenue was $581.1 million, an increase of 13 percent compared to the second quarter of fiscal 2016.
Laurent Potdevin, CEO, lululemon, says “Our performance reflects the growing global consumer response to lululemon’s unique position as the leading brand that defines an active, mindful lifestyle. Through continuing to deliver category-defining product innovation, we are creating experiences that our guests, both existing and new, desire. This strong brand momentum reinforces my confidence in our long-term strategy.”