Lululemon Athletica continues on its path to dominance.
The ath-leisure brand released second-quarter results Thursday after the bell, improving on both top and bottom lines.
Net revenues for the three months totaled $883 million, up from $723 million the same time last year. That’s a 22 percent increase. Profits also rose to $124 million, up from $95.7 million during 2018’s second quarter.
“We’re pleased with the ongoing strength across our business,” Calvin McDonald, chief executive officer of Lululemon, said in his prepared remarks. “We continue to make progress in delivering against our ‘Power of Three’ growth pillars: product innovation, omni-guest experience and market expansion. Our success demonstrates the significant runway in front of Lululemon and I’m grateful to our teams for bringing our vision to life.”
The Vancouver, Canada-based company revealed its five-year strategic growth plan at its analysts’ day last April. The plan was to expand internationally while doubling revenues in the next five years with new products in both men’s and women’s, and to introduce fresh categories, such as travel and self-care. New self-care products, including dry shampoo and deodorant, rolled out to 50 stores and online in June.
But McDonald told analysts on Thursday night’s conference call that demand was strong in both the men and women’s business, in particular with things like shorts. He added that more self-care products were coming this year, along with the launch of waterproof wool in the fall.
“We’re in the unique position of solving sweaty problems for athletes,” McDonald said.
But its not just shoppers who are craving Lululemon. Investors are, too.
Shares of Lululemon, which closed up 4.3 percent to $188.41 a piece, are ahead approximately 25 percent year-over-year.
And as retail competitors continue to close stores at a rapid pace, Lululemon is opening more, in both North America and abroad. In July, Lululemon opened a 20,000-square-foot experiential store in Chicago. Lululemon Lab is going into 45 Lululemon stores this fall. Meanwhile, comparable same-store sales, or sales at stores that have been open for at least 12 months, increased 10 percent last quarter. Online sales rose 30 percent.
“Lulu is clearly leveraging its sweet spot between product innovation and customer engagement,” Kate Fitzsimons, an analyst at RBC Capital Markets, wrote in a recent note. “Our focus will be on efforts to maintain the [second-half] momentum.”