During the second quarter Lululemon Athletica’s net revenue increased 13 per cent. Direct-to-consumer net revenue grew by 29 per cent. Total comparable sales zoomed seven per cent while comparable store sales noted a two per cent increase during the second quarter. Additionally, gross profit jumped 17 per cent.
Lululemon Athletica, based in the US, is a yoga-inspired apparel athletic company. The company expects its third quarter revenue to be in the range of $605 to $615. The estimated rise in total comparable sales (in the mid-single digits) during the upcoming quarter will boost Lululemon’s revenue. Lululemon Athletica has acquired a stake in 7mesh.
Lululemon is aiming to have an initial line of product from the collaboration with 7mesh in stores by the middle of 2018, aiming to take advantage of the key cycling season. Lululemon wants to dispel the impression that it does only yoga gear and is a yoga-inspired apparel maker. In recent years, it has sought to sell more clothes meant for running, swimming, and even outer wear.
New ventures like 7mesh are part of Lululemon’s 10-year plan to generate 50 per cent net new profitability from businesses and product categories where it doesn't currently compete.