Global performance apparel, footwear and accessories company Lululemon Athletica Inc reported second-quarter fiscal results showing continued strength in China even as its core US market stumbled.

Global net revenue rose 7 percent to $2.5 billion in the quarter ended July 28, the Vancouver-based company said. International revenue surged 22 percent, led by a 25 percent gain on the Chinese mainland.

CEO Calvin McDonald said the results reflect "positive momentum in international regions", though sales in the US and some product categories lagged. "We've closely assessed the drivers of our underperformance and are continuing to take the necessary actions to strengthen our merchandise mix and accelerate our business."

The company opened five new stores in China during the quarter and lifted brand awareness through a slate of community events. Its fifth-annual "Summer Sweat Challenge" drew strong participation across major cities, extending its message of well-being and active living, said the company.

San Yan Ng, managing director of Lululemon China, said momentum in the market reflects both consumer enthusiasm and supportive policy. "Growth in China is fueled by an open business environment and a growing passion for healthy living," she said.

Product launches continue to anchor the brand's positioning. McDonald highlighted the success of new lines such as Align, Daydrift and Be Calm. Categories spanning yoga, running, training, tennis and golf delivered solid growth.

CFO Meghan Frank said the company will maintain a disciplined approach to costs while investing in high-potential areas. In an earnings call she projected about 15 new stores in the Americas in 2025, nearly half in Mexico. International expansion will be concentrated in China.

"As we begin the back half of the year, our brand and balance sheet remain strong," Frank said. "We will continue to exercise financial discipline and strategically invest in our growth potential."

With the upcoming China International Import Expo in Shanghai, Lululemon said it will return for the second year as an exhibitor in the consumer goods pavilion. The company plans an immersive booth designed to highlight product innovation and its contribution to physical, mental and social well-being.

"We are excited to be back at the CIIE and deepen our connection with Chinese guests, partners and stakeholders," McDonald said. "China is an important market and growth engine for our brand, and through the CIIE platform, we look forward to sharing more about our business in the region and how we continue to help advance well-being across communities in alignment with the healthy China 2030 vision."

Last year marked Lululemon's debut at the expo, when it used the platform to expand partnerships and local presence. Since then, the brand has staged a series of activities, including its largest-ever yoga festival in China, which drew more than 10,000 participants across 43 cities in May to celebrate the 10th anniversary of its Align franchise. A mass yoga session was held at Beijing Workers' Stadium as part of the anniversary campaign.

The company also recently launched the fifth edition of its summer sweat games, one of the official "city customized events "under the 2025 Shanghai summer initiative.

Ng said preparations for this year's CIIE are well underway. "We are excited to showcase our athletic products across five key activities — Yoga, Run, Train, Tennis and Golf — along with our lifestyle offerings," she said. "Together with our brand ambassadors and special guests, we look forward to creating an engaging and inspiring experience that brings our culture to life."

The company's results show international markets are increasingly vital to its performance. With China posting double-digit revenue growth and serving as the primary focus for new store openings, the brand is betting that its blend of technical apparel, community events and cultural resonance will continue to attract young consumers seeking both fitness and lifestyle value, in fierce competition with international active-wear brands.

US active-wear brand Vuori has reportedly said that its first Beijing flagship will open in October, accelerating its retail roll-out across Asia. The California-based company entered China in May last year with a debut store in Shanghai's Jing'an Kerry Centre and quickly added two locations in the city. Vuori is on track to operate more than 100 stores globally by the end of 2025. Rival US yoga-apparel label Alo Yoga is also speeding up its Asian expansion. It is reported that Alo Yoga's China team has been scouting prime pitches and is expected to open its first store later this year.