Lululemon - The next premium apparel giant in the making?

However, the company has been slowly increasing its product offerings and is now slowly looking more like UNIQLO with a pricier price tag.

Here are 3 points to take note of their latest Q1'23 results release.

Revenue of Lululemon increased by 24% to USD 2 billion. The surprising part - is a 17% increase in North America, while a whopping 60% increase internationally. China's sales trend experiences an acceleration help to boost international sales.

What's also surprising is that Lululemon sports a gross margin of 57.5%, which is up by 360 basis points.

Codenamed the Power of Three x2, this is the growth plans that Lululemon has to double the business 2021 net revenue of USD 6.25 billion to USD 12.5 billion by 2026.

If the momentum does maintain for the rest of 2023, Lululemon will be doing USD 8 billion, which is already more than 50% closer than its target.

Capex for the latest quarter was higher, USD 136.9 million versus USD 111.4 million in Q1'22. This is due to more store openings in new locations, relocations, renovations, and as well as technology and distribution center investments.

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