lululemon athletica inc. Announces First Quarter Fiscal 2023 Results

Revenue increased 24% to $2.0 billion

Comparable sales increased 14%, or increased 17% on a constant dollar basis

Diluted EPS of $2.28

VANCOUVER, British Columbia--(BUSINESS WIRE)-- lululemon athletica inc. (NASDAQ:LULU) today announced financial results for the first quarter of fiscal 2023.

Calvin McDonald, Chief Executive Officer, stated: "We are pleased with our solid start to the year, delivering strong financial performance and continued momentum. Our results reflect the strength of our guest relationships, our innovative products and how our brand resonates across the globe. This year we celebrate our 25th anniversary, and our community-based model remains one of our biggest competitive advantages. We are excited for the future and remain on track to deliver on our Power of Three×2 growth plan."

For the first quarter of 2023, compared to the first quarter of 2022:

Net revenue increased 24% to $2.0 billion, or increased 27% on a constant dollar basis.

Net revenue increased 17% in North America, and increased 60% internationally.

Total comparable sales increased 14%, or 17% on a constant dollar basis.

Comparable store sales increased 13%, or 16% on a constant dollar basis.

Direct to consumer net revenue increased 16%, or 18% on a constant dollar basis.

Direct to consumer net revenue represented 42% of total net revenue compared to 45% for the first quarter of 2022.

Gross profit increased 32% to $1.2 billion and gross margin increased 360 basis points to 57.5%.

Income from operations increased 54% to $401.4 million.

Operating margin increased 400 basis points to 20.1%.

Income tax expense increased 69% to $119.0 million. The effective tax rate for the first quarter of 2023 was 29.1% compared to 27.0% for the first quarter of 2022.

Diluted earnings per share were $2.28 compared to $1.48 in the first quarter of 2022.

The Company repurchased 0.3 million shares of its own common stock at an average price of $336.37 per share for a cost of $98.1 million.

The Company opened seven net new company-operated stores during the first quarter, ending with 662 stores.

Meghan Frank, Chief Financial Officer, stated: "Our Q1 results were strong as guests responded well to our product offering in all our markets across the globe. A meaningful acceleration in our China sales trend, coupled with lower air freight, contributed to our better than planned financial performance. We are pleased with our momentum heading into the second quarter and for the full year as reflected in our revised outlook for FY23."

Balance sheet highlights

The Company ended the first quarter of 2023 with $950.6 million in cash and cash equivalents and the capacity under its committed revolving credit facility was $393.5 million.

Inventories at the end of the first quarter of 2023 increased 24% to $1.6 billion compared to $1.3 billion at the end of the first quarter of 2022.

About lululemon athletica inc.lululemon athletica inc. (NASDAQ:LULU) is a technical athletic apparel, footwear, and accessories company for yoga, running, training, and most other activities, creating transformational products and experiences that build meaningful connections, unlocking greater possibility and wellbeing for all. Setting the bar in innovation of fabrics and functional designs, lululemon works with yogis and athletes in local communities around the world for continuous research and product feedback.