China sales surge 70 per cent for Lululemon Athletica
Lululemon Athletica has reported a massive 70 per cent growth in first-quarter China sales, part contributing to a stellar performance globally.
Both sales and profit exceeded the company’s forecast and analysts expectations. Sales of its relatively new men’s range grew 26 per cent proved another highlight.
“Our guests responded well to both our men’s and women’s assortments,” CEO Calvin McDonald told analysts on a conference call after the results were released.
“They engage with us across channels as our store and digital businesses were both strong and our brand continues to resonate well in our core North American market, as well as in Europe and Asia Pacfiic.”
Earnings surged 28.5 per cent in the quarter to May 5, reaching to US$75.2 million, on sales up 20.4 per cent to $782.3 million. However those figures were boosted a little by a shift in the calendar. Taking that into effect, and on a same-store basis, sales rose 14 per cent.
Sales in Asia rose 40 per cent, led by China’s 70 per cent gain. The Canadain company opened its first stores in three new Chinese cities during the quarter: Shaanxi, Xi’an and Chongqing. It plans to add as many as 12 more to its network this year.
Lululemon also relaunched its Chinese website to complement its presence on Tmall and WeChat and websites in Japan and Korea were also launched.