lululemon's revenue growth slowed down last quarter, and the number of stores in the chinese market reached 132
2024-08-31
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beijing news shell finance (reporter wang zhenzhen) on august 30, lululemon released its second quarter results for fiscal year 2024 ending july 28. during the reporting period, lululemon achieved operating income of us$2.4 billion, a year-on-year increase of 7%; net profit of us$393 million, a year-on-year increase of 15%.
photo/wang zhenzhen, a reporter from beijing news shell finance, made the map
against the backdrop of weak global consumption of international sports brands, lululemon also saw a slowdown in revenue growth in the second quarter of this year. similar to other overseas sports brand "giants", lululemon is also continuously increasing its presence in the chinese market.
photo/wang zhenzhen, a reporter from beijing news shell finance, made the map
in the second quarter of 2024, lululemon's north american business revenue increased by 1% year-on-year, international business revenue increased by 29% year-on-year, and china business revenue increased by 34% year-on-year. the chinese market remains the fastest growing regional market for lululemon's revenue. calvin mcdonald, ceo of lululemon, said in the earnings call, "the chinese market maintained strong growth in the second quarter. we continue to expand new customer bases in stores and various e-commerce platforms, and attract new customers with innovative product lines, omni-channel operating models and unique brand positioning."
in the chinese market, lululemon entered the douyin e-commerce platform at the beginning of this year, and has also continued to open stores. at the end of 2016, the brand opened its first store in china. by the end of the second quarter of this year, lululemon had opened 132 stores in china in more than seven years, accounting for about 18% of the 721 stores worldwide. china is the market with the most stores for lululemon except the united states.
photo/wang zhenzhen, a reporter from beijing news shell finance, made the map
beijing news shell finance reporter noted that beijing and shanghai are the cities with the largest number of lululemon stores, with more than 20 stores each. in addition to first-tier cities such as beijing, shanghai, guangzhou and shenzhen, lululemon is also expanding to cities such as nanjing, chongqing, hangzhou, ningbo, quanzhou, qingdao, nantong and jinhua.
although revenue growth slowed in the second quarter, lululemon's gross profit margin increased by 0.8 percentage points year-on-year to 59.6%. meghan frank, lululemon's chief financial officer, said: "as we enter the second half of the year, we will continue to focus on near-term priorities while looking at strategic investments for long-term growth."
lululemon expects its net revenue in the third quarter of fiscal 2024 to be between us$2.34 billion and us$2.365 billion, an increase of 6% to 7%; its net revenue in fiscal 2024 will be between us$10.375 billion and us$10.475 billion, an increase of 8% to 9%. previously, the company expected its net revenue in fiscal 2024 to be between us$10.7 billion and us$10.8 billion.
editor: li zheng
proofread by mu xiangtong
