Sales in China, which accounted for roughly 12% of overall revenue, increased 61% thanks to resilient demand following the easing of pandemic curbs. Still, these growth rates slowed from the first quarter as global economic uncertainty increased. Lululemon previously said it was seeing no change in customer behavior, indicating that people were sticking to their pandemic habits of shopping for comfortable clothing such as Dance Studio joggers, running shorts as well as accessories like backpacks and small pouches. "Guests are responding well to back-to-school and early fall product innovations," Chief Executive Calvin McDonald said on a post-earnings call. Lululemon said inventories increased 14% in the second quarter, below the roughly 20% growth forecast in June. It expects inventory to be up in the high single digit to low double-digits percentage in the third quarter.