Lululemon sees potential in Chinese market
Lululemon Athletica Inc reported a 53 percent growth in revenue in the Chinese market during the third quarter of fiscal 2023, showing its robust performance driven by store outcomes and strong connections with local communities.
In the recently announced financial results for Q3, Lululemon revealed a 19 percent increase in net revenue to $2.2 billion, accompanied by a 21 percent rise in gross profits to $1.3 billion.
Calvin McDonald, chief executive officer of Lululemon, said that China has emerged as the most significant region outside of North America, with all international sectors experiencing double-digit growth, notably a remarkable 53 percent surge in the Chinese market.
The CEO highlighted factors contributing to their growth momentum in the Chinese market, including the potential for growth beyond their current 114 stores on the mainland, the localized nature of the brand through collaborations with local fitness entities and engaging in community-based events.
The CEO said that stores in China consistently outperform expectations, with new openings across tier 1 to tier 3 cities garnering positive results, with the Kerry Center store in Shanghai delivering strong outcomes.
"In a lot of these locations, we've hit that productivity level where it's time to go back and invest and expand the assortment and continue to drive the overall results in those stores," said the CEO.
