Athletic apparel company Lululemon Athletica has posted a revenue increase of 18 per cent to $2.2 billion for the second quarter, driven by a 52 per cent growth in its international business.

Although the growth is not as impressive as the prior year’s 28.8 per cent increase, the Canadian company is still performing much better than others in the retail market, especially during a time of rising consumer caution, according to Neil Saunders, MD of GlobalData.

Total comparable sales increased 11 per cent, while gross profit was up 23 per cent to $1.3 billion and operating income jumped 19 per cent.

The company opened 10 net new company-operated stores during the second quarter, ending with 672 stores.

Calvin McDonald, CEO of Lululemon, said that the results reflect the business’s ongoing strength in a dynamic operating environment.

“Our continued ability to gain market share and bring new customers into the brand illustrates the significant runway ahead for Lululemon,” McDonald added.

Saunders highlighted some “unique ingredients” that contributed to the brand’s growth.

“The primary one is the continued focus on excellent products which helps persuade people to buy. Innovation is very important here as new technical benefits create interest among consumers and allow them to justify buying something new because they see it as an upgrade on something they may already have. 

“Design also plays a role with interesting new colorways and silhouettes helping to create interest and drive buying.”

For the full-year guidance, the company expects net revenue to be in the range of $9.51 billion to $9.57 billion, representing growth of 17 to 18 per cent.