Lululemon stitches strong start to year with Q1 profit surging 31 per cent to US$185M

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VANCOUVER — Lululemon Athletica's year got off to a strong start as net income surged about 31 per cent to US$190 million on a double-digit increase in revenues.

The Vancouver-based athletic clothing company, which reports in U.S. dollars, says it earned US$1.48 per diluted share in the first quarter, up from US$1.11 per share or US$145 million a year earlier.

Adjusted profits were US$1.16 per share while revenues for the three months ended May 1 were US$1.61 billion, up 32 per cent from US$1.23 billion in the first quarter of 2021.

Lululemon was expected to earn US$1.43 per share on US$1.53 billion of revenues, according to financial data firm Refinitiv.

Total comparable sales for stores open at least a year, a key retail metric, increased 28 per cent with stores sales rising 24 per cent and direct to consumer revenue up 32 per cent.

The company opened five net new company-operated stores during the quarter, ending with 579 locations.

"Our teams continue to deliver strong financial performance while navigating the ongoing impacts of COVID-19, supply chain disruptions and inflationary pressures," chief financial officer Meghan Frank said in a news release.

"While we are not immune to these challenges, our omni operating model, balanced growth strategy, and unique approach toward innovation enable the positive results we are reporting today and anticipate for the full year."

This report by The Canadian Press was first published June 2, 2022.

The Canadian Press

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