Core Insights - Lululemon reported $3.61 billion in revenue for the quarter ended January 2025, marking a year-over-year increase of 12.7% and an EPS of $6.14 compared to $5.29 a year ago, exceeding both revenue and EPS consensus estimates [1] Financial Performance - Revenue surprise was +0.90% over the Zacks Consensus Estimate of $3.58 billion, while the EPS surprise was +4.96% over the consensus estimate of $5.85 [1] - Total stores increased to 767, surpassing the average estimate of 764 [4] - Total Gross Square Footage reached 3,372 Ksq ft, exceeding the estimated 3,296.19 Ksq ft [4] Sales Metrics - Total Comparable Sales (in constant dollars) were 4%, slightly below the estimated 4.8% [4] - Total Comparable Sales were 3%, compared to the average estimate of 5.2% [4] - Geographic Revenues in the Americas were $2.79 billion, above the estimated $2.73 billion [4] - Geographic Revenues from China Mainland were $425.02 million, exceeding the estimate of $409.93 million [4] - Geographic Revenues from the Rest of the World were $392.40 million, slightly below the estimate of $397.02 million [4] - Geographic Revenues in the United States were $2.30 billion, surpassing the average estimate of $2.22 billion, with a year-over-year change of +5.2% [4] Revenue by Channel - E-commerce revenue was $1.81 billion, slightly above the estimated $1.80 billion, representing an +8.1% year-over-year change [4] - Revenue from company-operated stores was $1.51 billion, exceeding the estimate of $1.47 billion, with a +17.9% year-over-year change [4] - Other revenue was $291.04 million, below the average estimate of $298.90 million, but still showing a +17% year-over-year change [4] Revenue by Category - Revenue from other categories was $472.19 million, slightly below the estimate of $478.83 million, with a +13% year-over-year change [4]

Core Insights - Lululemon reported quarterly earnings of $6.14 per share, exceeding the Zacks Consensus Estimate of $5.85 per share, and up from $5.29 per share a year ago, representing an earnings surprise of 4.96% [1] - The company achieved revenues of $3.61 billion for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 0.90% and increasing from $3.21 billion year-over-year [2] - Lululemon has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The sustainability of Lululemon's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $2.74 on revenues of $2.39 billion, and for the current fiscal year, it is $15.36 on revenues of $11.33 billion [7] Industry Context - The Textile - Apparel industry, to which Lululemon belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Lululemon's stock performance [5][6]

Lululemon Athletica exceeded earnings and revenue expectations, driven by international growth and product innovation. Upscale athletic apparel specialist Lululemon Athletica (LULU 1.18%) reported fourth-quarter 2024 earnings on Thursday, March 27, that topped analysts' consensus expectations. Earnings per share (EPS) was an impressive $6.14, eclipsing the $5.85 estimate. Meanwhile, Lululemon's revenue climbed to $3.61 billion, exceeding the forecasted $3.58 billion. The company's strategic focus on global ...

lululemon athletica inc. (LULU) Q4 2024 Earnings Conference Call March 27, 2025 04:30 PM ET Company Participants Jeff Walker - Vice President at the Howard GroupRandy Boomhauer - CEO and President of SimatrixMJ Kent - CFO of Simatrix Jeff Walker Looks like everyone's coming in. So first, thank you everybody for joining us today. I'm Jeff Walker, Vice President at the Howard Group. We're speaking with Randy Boomhauer, CEO and President, and MJ Kent, who is CFO of Simatrix. We'll go through the presentation d ...

Lululemon (LULU) Q4 2025 Earnings Call March 27, 2025 04:30 PM ET Company Participants Howard Tubin - Vice President of Investor RelationsCalvin McDonald - CEOMeghan Frank - Chief Financial OfficerAlexandra Straton - Equity Research Managing DirectorBrooke Roach - Vice President - Equity ResearchDana Telsey - CEO and Chief Research OfficerLorraine Hutchinson - Managing DirectorMichael Binetti - Senior Managing DirectorJohn Kernan - Managing DirectorPaul Lejuez - Managing DirectorJay Sole - Managing Director ...

Lululemon store in Manhattan, New York City, U.S., on July 15, 2024.Lululemon beat Wall Street expectations for fiscal fourth-quarter earnings and revenue, but issued 2025 guidance that disappointed analysts.Shares of the apparel company fell about 6% in extended trading.Here's how the company did compared with what Wall Street was expecting for the quarter ended Feb. 2, based on a survey of analysts by LSEG:Earnings per share: $6.14 vs. $5.85 expectedRevenue: $3.61 billion vs. $3.57 billion expectedFourth- ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Financial Performance - In 2024, lululemon's net revenue reached $7,928,156, representing a growth of 3.9% compared to $7,631,647 in 2023[28]. - Net revenue from China Mainland increased by 41.3% to $1,361,337 in 2024, up from $963,760 in 2023[32]. - Net revenue increased by 10% to $10.6 billion in 2024, with a constant dollar increase of 11%[199]. - Comparable sales increased by 4%, with a 25% increase in China Mainland and a 19% increase in the Rest of World, while Americas comparable sales decreased by 1%[199]. - Gross profit rose by 12% to $6.3 billion, with a gross margin increase of 90 basis points to 59.2%[199]. - Income from operations increased by 17% to $2.5 billion, with an operating margin increase of 150 basis points to 23.7%[199]. - Net income for 2024 was $1.81 billion, reflecting a 17.1% increase compared to 2023[205]. - Selling, general and administrative expenses increased by 10.7% to $3.76 billion, representing 35.5% of net revenue[209]. - The effective tax rate for 2024 was 29.6%, up from 28.8% in 2023, with income tax expense increasing by 22% to $761.5 million[205]. Revenue Sources - Women's products accounted for 63% of net revenue, while men's products contributed 24%, indicating a growing interest in the men's line[20]. - The Americas generated 75% of total net revenue in 2024, highlighting its importance to lululemon's overall business strategy[27]. - The Rest of World segment, which includes APAC and EMEA, saw net revenue growth of 26.8% to $1,298,633 in 2024[35]. - Company-operated store net revenue increased by 14%, and e-commerce net revenue increased by 6%[192]. - Revenue growth in the Americas was driven by a 4% increase, primarily from strength in Canada[190]. Expansion and Retail Strategy - The company plans to continue expanding its physical retail locations, with a total of 767 company-operated stores as of February 2, 2025, up from 711 in 2024[39]. - The company plans to continue expanding its physical retail locations to support growth objectives, despite the risks associated with shifting consumer preferences towards e-commerce[87]. - The company added 56 net new company-operated stores, contributing to a 14% increase in square footage[190]. - On September 10, 2024, lululemon acquired retail locations and operations in Mexico, previously operated by a third party[30]. Supply Chain and Manufacturing - The company sources 40% of its products from Vietnam, with the largest manufacturer producing 15% of total products[46]. - Approximately 40% of the company's products are manufactured in Vietnam, with significant contributions from Cambodia (17%), Sri Lanka (11%), Indonesia (11%), and Bangladesh (7%)[102]. - The company relies heavily on international suppliers, with potential supply chain disruptions due to geopolitical events, public health crises, and inflationary pressures[101]. - The company worked with approximately 52 vendors for product manufacturing and 67 suppliers for fabric supply in 2024[105]. Sustainability and Social Impact - Lululemon's re-commerce program, "Like New," allows guests to exchange gently used products for merchandise credit, promoting sustainability[40]. - As of February 2, 2025, the company has invested a total of $71.0 million towards its goal of advancing equity in well-being, with a target of $75.0 million by the end of 2025[54]. - The company has contributed $71.0 million to lululemon's Centre for Social Impact, with $45.5 million directed to social impact organizations[57]. - Approximately 55% of the board of directors and 60% of the senior executive leadership team are women, while 75% of the overall workforce are women as of February 2, 2025[55]. Risks and Challenges - The athletic apparel market is highly competitive, with increasing competition from established companies and new entrants[52]. - The company faces significant pressure on costs and pricing due to intense competition and inflationary pressures[79]. - The company faces risks in accurately forecasting guest demand, which could lead to excess inventory or product shortages, adversely affecting financial performance[80]. - Economic and political conditions, including trade restrictions and tariffs, could negatively affect the company's results of operations and cash flows[120]. - Global economic uncertainty may adversely impact consumer discretionary spending and demand for the company's products[118]. - The company is subject to scrutiny regarding its environmental, social, and governance (ESG) practices, which could affect its reputation and operational costs[115]. Technology and Cybersecurity - The company’s technology systems are critical for e-commerce operations, and any disruptions could lead to lost sales and harm to reputation[98]. - The board of directors oversees cybersecurity risks, with a dedicated sub-committee managing assessments and responses to incidents[159]. - The company has identified cybersecurity as a risk management priority, with regular reports provided to the board regarding the state of its information security program[160]. Financial Instruments and Currency Risks - Fluctuations in foreign currency exchange rates have historically affected the company's net revenue and expenses, with international operations primarily reported in U.S. dollars[137]. - The company has implemented financial instruments to hedge against foreign currency risks, but these measures may not fully offset negative impacts from currency fluctuations[139]. Product Development and Innovation - The company expanded its product offerings, including new styles in footwear and accessories, and launched the Daydrift trouser for women[198]. - The company has discontinued selling hardware for MIRROR, rebranded as lululemon Studio, indicating challenges in managing new product categories[83].

[Lululemon Fiscal 2024 Earnings Release](index=1&type=section&id=lululemon%20athletica%20inc.%20Announces%20Fourth%20Quarter%20and%20Full%20Year%20Fiscal%202024%20Results) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Lululemon achieved record annual revenue exceeding $10 billion in fiscal 2024, driven by strong international growth and robust fourth-quarter performance Fiscal 2024 Key Financial Results | Metric | Fourth Quarter 2024 | Full Year 2024 | | :--- | :--- | :--- | | Net Revenue | $3.6 billion (+13% YoY) | $10.6 billion (+10% YoY) | | Diluted EPS | $6.14 | $14.64 | - The company's performance exceeded expectations, driven by new product introductions and innovation[2](index=2&type=chunk) [Fourth Quarter 2024 Performance](index=1&type=section&id=Fourth%20Quarter%202024%20Performance) Q4 2024 saw net revenue increase 13% to $3.6 billion, driven by strong international growth and improved margins Q4 2024 vs. Q4 2023 Performance | Metric | Q4 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $3.6 billion | $3.2 billion | +13% | | Gross Profit | $2.2 billion | $1.9 billion | +15% | | Gross Margin | 60.4% | 59.4% | +100 bps | | Income from Operations | $1.0 billion | $0.9 billion | +14% | | Diluted EPS | $6.14 | $5.29 | +16.1% | - **Americas Net Revenue:** Increased by **7%**[3](index=3&type=chunk) - **International Net Revenue:** Increased by **38%**[3](index=3&type=chunk) - **Comparable Sales:** Increased by **3%** (excluding the 53rd week)[3](index=3&type=chunk) - **Share Repurchases:** **0.9 million** shares for **$332.2 million**[3](index=3&type=chunk) - **Store Openings:** **18** net new company-operated stores[3](index=3&type=chunk) [Full Year 2024 Performance](index=1&type=section&id=Full%20Year%202024%20Performance) Full fiscal year 2024 net revenue grew 10% to $10.6 billion, driven by strong international performance and margin expansion Full Year 2024 vs. 2023 Performance | Metric | Fiscal Year 2024 | Fiscal Year 2023 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $10.6 billion | $9.6 billion | +10% | | Gross Profit | $6.3 billion | $5.6 billion | +12% | | Gross Margin | 59.2% | 58.3% | +90 bps | | Income from Operations | $2.5 billion | $2.1 billion | +17% | | Diluted EPS | $14.64 | $12.20 | +20.0% | - **Americas Net Revenue:** Increased by **4%**[3](index=3&type=chunk)[11](index=11&type=chunk) - **International Net Revenue:** Increased by **34%**[3](index=3&type=chunk)[11](index=11&type=chunk) - **Comparable Sales:** Increased by **4%** (excluding the 53rd week)[3](index=3&type=chunk)[11](index=11&type=chunk) - **Share Repurchases:** **5.1 million** shares for **$1.6 billion**[3](index=3&type=chunk)[11](index=11&type=chunk) - **Store Additions:** **56** net new stores, including 14 from the Mexico acquisition[3](index=3&type=chunk)[11](index=11&type=chunk) [Management Commentary and Outlook](index=1&type=section&id=Management%20Commentary%20and%20Outlook) Management expressed satisfaction with 2024 results, reaffirming the 'Power of Three ×2' plan and providing 2025 growth outlook - The CEO stated that Q4 results exceeded expectations, attributing the success to newness and innovation in the product assortment[2](index=2&type=chunk) - The CFO highlighted surpassing **$10 billion** in annual revenue for the first time and emphasized remaining agile amid macro uncertainties[5](index=5&type=chunk) - The company is executing its "Power of Three ×2" growth plan, which targets doubling 2021 net revenue of **$6.25 billion** to **$12.5 billion** by 2026[10](index=10&type=chunk) [Balance Sheet Highlights](index=3&type=section&id=Balance%20Sheet%20Highlights) Lululemon maintained strong liquidity with $2.0 billion cash and $393.9 million available credit, with inventories up 9% Key Balance Sheet Items (End of FY 2024) | Item | Value | | :--- | :--- | | Cash and cash equivalents | $2.0 billion | | Available Credit Facility | $393.9 million | | Inventories | $1.4 billion (+9% YoY) | [Fiscal 2025 Outlook](index=3&type=section&id=Fiscal%2025%20Outlook) The company provided fiscal 2025 guidance, projecting Q1 revenue of $2.335-$2.355 billion and full-year revenue of $11.15-$11.30 billion Q1 Fiscal 2025 Guidance | Metric | Expected Range | | :--- | :--- | | Net Revenue | $2.335 billion - $2.355 billion | | Revenue Growth | 6% - 7% | | Diluted EPS | $2.53 - $2.58 | Full Year Fiscal 2025 Guidance | Metric | Expected Range | | :--- | :--- | | Net Revenue | $11.150 billion - $11.300 billion | | Revenue Growth | 5% - 7% | | Revenue Growth (ex. 53rd week) | 7% - 8% | | Diluted EPS | $14.95 - $15.15 | [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements detail Lululemon's performance, showing revenue and net income growth, increased assets, and strong operating cash flow [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Fiscal 2024 net revenue increased to $10.59 billion, with gross profit rising to $6.27 billion and diluted EPS reaching $14.64 Fiscal Year Performance (in thousands) | Account | Fiscal Year 2024 | Fiscal Year 2023 | | :--- | :--- | :--- | | Net revenue | $10,588,126 | $9,619,278 | | Gross profit | $6,270,811 | $5,609,405 | | Income from operations | $2,505,697 | $2,132,676 | | Net income | $1,814,616 | $1,550,190 | | Diluted earnings per share | $14.64 | $12.20 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of February 2, 2025, total assets reached $7.60 billion, with cash decreasing to $1.98 billion and inventories increasing to $1.44 billion Balance Sheet Summary (in thousands) | Account | Feb 2, 2025 | Jan 28, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,984,336 | $2,243,971 | | Inventories | $1,442,081 | $1,323,602 | | Total assets | $7,603,292 | $7,091,941 | | Total liabilities | $3,279,245 | $2,859,860 | | Total stockholders' equity | $4,324,047 | $4,232,081 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Fiscal 2024 operating cash flow was $2.27 billion, with significant cash used in financing activities, leading to a net cash decrease of $260 million Cash Flow Summary (in thousands) | Activity | Fiscal Year 2024 | Fiscal Year 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,272,713 | $2,296,164 | | Net cash used in investing activities | ($798,174) | ($654,132) | | Net cash used in financing activities | ($1,652,508) | ($548,828) | | Net (decrease) increase in cash | ($259,635) | $1,089,104 | [Supplemental Financial Information](index=10&type=section&id=Supplemental%20Financial%20Information) Supplemental information includes non-GAAP reconciliations, detailing constant dollar revenue, 53rd week impact, and store network expansion [Reconciliation of Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP to non-GAAP measures, adjusting for currency, 53rd week impact, and lululemon Studio charges for clearer trend analysis FY 2024 Revenue Growth Reconciliation | Metric | Reported Change | Constant Dollar Change | Change ex. 53rd Week (non-GAAP) | | :--- | :--- | :--- | :--- | | Total Revenue | 10% | 11% | 8% | - For fiscal 2023, results were adjusted to exclude charges related to lululemon Studio, which included inventory provisions, asset impairments, and restructuring costs[16](index=16&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) - This adjustment increased FY2023 diluted EPS from **$12.20** (GAAP) to **$12.77** (Adjusted)[16](index=16&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) [Store Network Expansion](index=13&type=section&id=Store%20Network%20Expansion) Lululemon expanded its physical retail footprint in fiscal 2024, adding a net of 56 stores to reach 767 company-operated locations Store Count Change in FY 2024 | Quarter | Stores Opened | Stores Closed | Net Change | | :--- | :--- | :--- | :--- | | Q1 2024 | 5 | 5 | 0 | | Q2 2024 | 11 | 1 | +10 | | Q3 2024 | 28 | 0 | +28 | | Q4 2024 | 21 | 3 | +18 | | **Total** | **65** | **9** | **+56** | - The company ended fiscal 2024 with **767** stores, up from 711 at the start of the year[46](index=46&type=chunk)

Fourth quarter results from Lululemon (LULU)  will highlight this week’s earnings lineup with the apparel retailer set to release its Q4 report after-market hours on Thursday, March 27.At times, the yoga-inspired athletic gear provider has etched out wonderful gains for investors, but LULU shares have fallen 11% year to date and have performed virtually flat over the last three years. Although Lululemon has taken market share from historic athletic apparel leaders such as Nike (NKE) , investors have been sk ...