Lululemon reported strong earnings in its first quarter in 2023 with a net revenue increase of 24% to $2 billion and a gross profit increase of 32% to $1.2 billion. Although earnings were solid across the board, Lululemon experienced significant growth overseas with a 60% net revenue increase internationally.
Lululemon intends to open 30 to 35 stores overseas this year, most of which will be in China, where revenue grew by 79% alone in the latest quarter, per CNBC.
Following the earnings report on Thursday, stock for the athleisure brand surged by 13% in after-hours trading.
Related: The Founder of Lululemon Breaks Down His Rule of 3
Lululemon expects a net revenue range between $2.14 billion and $2.17 billion for the second quarter of 2023 and between $9.4 billion and $9.5 billion for the year (which would mark nearly 17% sales growth as compared to 2022).
It’s been up and down for retail. Lululemon competitor Athleta had an 11% decline in net sales for Q1 2023.
However, last week, Abercrombie & Fitch reported surprising earnings in its first quarter this year with net sales of $836 million, up 3% compared to last year, outpacing analyst predictions of a 1% decline.
Related: Lululemon Hits Peloton With a Lawsuit for Its ‘Knockoff’ Designs
This story originally appeared on Entrepreneur
