Although overall visits to sportswear and sporting goods retailers declined, Lululemon saw positive year-over-foot traffic growth between April and June. Lululemon Athletica’s net revenue rose by 18 per cent, and in-store sales increased by nine percent for the second quarter.
The brand saw more than a 20 percent increase in traffic during the second quarter within 672 stores worldwide and digital channels.
“This speaks to the strength of our omni-operating model as we engage with our guests in ways most convenient to them,” said Meghan Frank, CFO of Lululemon.
Lululemon plans to open approximately 55 net new company-operated stores and complete approximately 25 co-located remodels this year.
“This will contribute to overall square footage growth in the low teens. Our new opening in 2023 will include approximately 35 stores in our international markets, with most of these planned for China.”
“They've been doing an amazing job in almost every aspect of their business. Stores are getting bigger, but their sales keep growing at the same relative clip,” said Colin Shaughnessy, Executive Vice President of Unibail-Rodamco-Westfield.
“We've seen many retailers grow their store size over the past few decades, then retract it because they realise they didn't need all that space. We've got Lululemon stores that perform at huge volumes.”
The retailer announced its “Power of Three” marketing strategy in the five-year plan, emphasising menswear, likely contributing to its steady growth.
Between the second quarter of 2019 and the second quarter of 2023, the share of male visitors to top Lululemon locations nationwide grew significantly, with Lululemon in Manhasset, New York, seeing the share of males in its trade area increase from 23.8 percent in the second quarter of 2019 to 42.5 percent in the second quarter of 2023.
