The leading athletic apparel, footwear and accessories company Lululemon Athletica Inc posted a 34 percent year-over-year increase in net revenue on the Chinese mainland for the second quarter, driven by an influx of new customers through its stores and e-commerce platforms, alongside a diverse product portfolio.
The company released its financial results for the second quarter of fiscal 2024, which ended on July 28, 2024.
Calvin McDonald, chief executive officer, said “In the second quarter, Lululemon delivered revenue and earnings growth, with ongoing strength across our international business.”
McDonald said of the brand’s continued robust performance on the mainland market, “Our business remained strong in the second quarter as we continue to bring new guests into the brand through our stores and multiple e-commerce platforms.”
He attributed this growth to Lululemon’s “innovative product offerings and omnichannel operating model”.
“We are acquiring guests through our unique made-to-feel positioning, which comes to life through our commitment to movement and community, all of which supports the Healthy China 2030 initiative,” McDonald added.
During the second quarter, Lululemon’s Summer Sweat Games expanded to more than 70 stores across nearly 40 cities, engaging about 10,000 participants. The national finals took place this past weekend in Beijing.
Looking ahead to the third quarter, Lululemon plans to leverage World Mental Health Day in October with events across several cities in China.
“We remain excited about the potential for Lululemon on the Chinese mainland,” McDonald said. “Our business remains strong, and we believe several factors will continue to benefit us.”
During the earnings call, McDonald said that Lululemon’s footprint in the Chinese market is still relatively small, with 132 stores as of the end of the quarter.
“We take a very localized approach to the brand, building relationships through local fitness instructors, influencers, and events that are raising awareness in the community, all underpinned by our wellness-focused product positioning,” McDonald said.
“I believe we’re still early in our growth there and see continued success across Tier 1, Tier 2, and Tier 3 cities where we’ve been opening stores, testing the market, and receiving positive responses.”
Meghan Frank, chief financial officer of Lululemon, at the earnings call, said of the company’s expansion plans for 2024,”We plan to open five to 10 stores in the Americas, with the remainder of new openings primarily on the Chinese mainland.”