Lululemon continues meteoric growth under new CEO

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Lululemon CEO

Athleisure brand Lululemon has seen its shares increase more than seven per cent after smashing analysts expectations in the second quarter.

For the three months ended July 29 Lululemon reported a net income of $95.8 million (£73.6 million), up from $48.7 million (£37.4 million) a year earlier.

This equated to earnings of 71 cents per share, nearly doubling the 36 cents per share it made last year, and coming well above analysts’ expectations of 49 cents per share.

Revenues also increased nearly 25 per cent to $723.5 million (£556.1 million), smashing predictions of $668 million (£513.44 million).

Same-store sales growth also more than doubled analysts expectations, rising 20 per cent.

The runaway sales growth was attributed to strong sales in its Asian markets, alongside healthy growth in both its online operations and menswear ranges.

“We have a real big opportunity internationally, in particular in Asia,” chief executive Calvin McDonald said.

“It’s one that the team feels is a growth potential, of disproportionate growth for this business and brand.”

This will come as a major relief to McDonald, who took the reigns from Laurent Potdevin in July after he resigned abruptly in February, amid numerous allegations that he “fell short” of “standards of conduct”.

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