By Samantha Delouya and Elisabeth Buchwald, CNN
(CNN) — Shares of Lululemon jumped after the market closed on Thursday, buoyed by stronger than anticipated quarterly results reflecting a jump in sales in China and beyond.
The athleisure retailer said its net revenue rose by 24% to $2 billion between the first quarter of 2022 and the first quarter of 2023. The company performed particularly well with its international customers: sales rose 60% year-over-year outside of North America.
Lululemon highlighted “a meaningful acceleration in our China sales trend,” as a bright spot for the business.
“Our results reflect the strength of our guest relationships, our innovative products and how our brand resonates across the globe,” CEO Calvin McDonald said in a statement.
Shares of Lululemon rose 13% in after-hours trading.
Despite still-elevated inflation, Lululemon expects customers will continue spending on its leggings, yoga mats and other athletic wear for the rest of the year. The retailer raised its expectations for net revenue in 2023 to between $9.4 billion and $9.5 billion, representing 17% sales growth.
Lululemon isn’t the only apparel company that had a strong quarter.
Abercrombie & Fitch posted a net income of $16.57 million last quarter compared to a loss of $16.46 million a year prior. That sent the stock 30% higher last week.
But overall retail earnings have been mixed.
Earnings for big-box retailers like Target are flashing warning signs as consumers are pulling back on discretionary purchases. Meanwhile, Home Depot reported steep sales and revenue declines after three years of robust growth
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