Financial Data and Key Metrics - Total revenue increased 7% or 8% in constant currency, with earnings per share rising 18% driven by strong gross margin, contributing to a 110 basis point increase in operating margin [10] - Gross profit for Q2 was $1.4 billion or 59.6% of net revenue, up 80 basis points from Q2 2023, driven by a 130 basis point increase in product margin [30] - Operating income for Q2 was $540 million or 22.8% of net revenue, compared to 21.7% in Q2 2023 [32] - Net income for Q2 was $393 million or $3.15 per diluted share, up from $2.68 in Q2 2023 [32] - The company repurchased $584 million of stock in Q2, bringing the year-to-date total to $1.2 billion [10] Business Line Performance - Women's revenue increased 6%, men's grew 11%, and accessories increased 7% [10] - Men's business remained robust, with strength across the assortment, including Zeroed In, Pace Breaker, and Show Zero Polo [20] - Women's business experienced a slowdown due to reduced newness in product offerings, particularly in bottoms and the online channel [14][15] - Accessories business grew 7%, driven by new styles in the Everywhere franchise and other innovative products [21][22] Regional Performance - International revenue increased 29% or 31% in constant currency, with China mainland up 34% or 37% and Rest of World up 24% or 27% [10][11] - Americas revenue increased 1% or 2% in constant currency, with Canada growing 8% or 11% and the U.S. flat [13] - Store channel sales increased 11%, with 721 stores globally and 49 net new stores added since Q2 2023 [29] - Digital channel revenue increased 2%, contributing $900 million or 38% of total revenue [29] Company Strategy and Industry Competition - The company aims to quadruple international revenue from 2021 levels by the end of 2026 [10] - A new product organization structure was implemented to improve the balance between design and merchandising, with a focus on increasing newness in the women's assortment [16][17] - The company is leveraging its membership program, which now has over 20 million essential members, to drive loyalty and long-term value [19] - The company is focused on increasing brand awareness and consideration through global campaigns and activations, such as the Summer Sweat Game Series in China and partnerships with the Canadian Olympic and Paralympic teams [23][24] Management Commentary on Operating Environment and Future Outlook - The company expects revenue growth of 6% to 7% for Q3 and the full year, excluding the 53rd week, with uncertainties around the shorter holiday shopping season and the U.S. election in Q4 [26][35] - The company plans to improve the penetration of newness in the women's assortment in the second half of 2024, with a return to historical levels of newness by Spring 2025 [17][26] - The company remains committed to its Power of Three Times Two target of doubling revenue from $6.25 billion in 2021 to $12.5 billion in 2026 [27] Other Important Information - The company paused sales of the Breathe Through product due to guest feedback, with plans to reintroduce the fabric in the future [22] - The company expects inventory to increase in the mid-teens in Q3 and slightly higher in Q4, with markdowns expected to be flat for the full year [36][47] Q&A Session Summary Question: Revenue growth algorithm in North America and guardrails for consistency [42] - The company remains committed to low double-digit growth in North America, with a focus on improving brand awareness and product newness [43] - The new product organization structure is expected to lead to more creative conversations and better decision-making, with a focus on the ratio of newness in product plans [44] Question: Inventory and markdowns [45] - Inventory declined 14% in Q2, in line with expectations, with mid-teens growth expected in Q3 and Q4 [46] - Markdowns were flat year-over-year in Q2, with Q3 markdowns expected to be in line with last year and Q4 slightly below [47] Question: Revised full-year guidance and revenue shortfall [49][51] - The revised guidance reflects a softer Q4 due to a shorter holiday shopping season and macroeconomic uncertainty, with no change in the relationship between Q3 and Q4 [50] - The revenue shortfall in Q2 was attributed to product decisions within the company's control, particularly the lack of newness in the women's assortment [52] Question: Regional performance and inventory [55] - Q2 performance was softer in June and July, with no significant regional breakdown provided [56] - The Breathe Through pause had a negligible financial impact, with no material markdowns or inventory resets [56][74] Question: P&L mechanics and product organization changes [58] - The company is managing the P&L by investing in international growth and brand awareness while seeking efficiency opportunities [59] - The new product organization structure aims to improve the balance between design and merchandising, leading to more creative outcomes and better product mix [61][62] Question: Product innovation and back-to-school campaign [65][76] - The Breathe Through fabric will be reintroduced in the future, with no specific timeline for 2024 or 2025 [66] - The company is focusing on increasing newness in the women's assortment, with seasonal updates and new performance fabrics [67][68] - The back-to-school campaign is targeting younger guests, particularly men, with a focus on loungewear and the Cityverse sneaker [25] Question: China growth and comp trends [81] - China revenue grew 37% in constant currency in Q2, with strong performance across both store and digital channels [82] - The company remains optimistic about growth in China, with a localized approach to brand building and product positioning [84] Question: Core product performance and accessories outlook [86] - The slowdown in women's was due to a lack of newness in core styles, with improvements expected in Q3 and Q4 [87] - Accessories grew 7% in Q2, with new styles and innovations driving continued momentum [88] Question: Gross margin and SG&A concerns [91] - The company expects gross margin to be relatively in line with 2023, with flat SG&A and strong operating margin [92] - The company remains committed to modest operating margin expansion over the long term [92] Question: Core customer changes in women's [93] - The company continues to acquire new guests across all age demographics, with improvements in sizing mix expected in Q3 [94]

Lululemon management lowered its full-year guidance of revenue and earnings.Athletic apparel specialist Lululemon Athletica (LULU 0.07%) reported mixed second-quarter results on Thursday. Earnings per share (EPS) surpassed analyst consensus expectations but revenue slightly missed. This reflects steady growth but highlights areas for potential improvement in revenue generation.The quarter was marked by robust international growth and improved margins, but the growth in the Americas lagged. Overall, the quar ...

For the quarter ended July 2024, Lululemon (LULU) reported revenue of $2.37 billion, up 7.3% over the same period last year. EPS came in at $3.15, compared to $2.68 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $2.4 billion, representing a surprise of -1.37%. The company delivered an EPS surprise of +7.88%, with the consensus EPS estimate being $2.92.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they com ...

SAN DIEGO, Aug. 29, 2024 (GLOBE NEWSWIRE) -- Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Lululemon Athletica Inc. (NASDAQ: LULU) securities between December 7, 2023 and July 24, 2024. Lululemon is principally a designer, distributor, and retailer of technical athletic apparel, footwear, and accessories. For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003. ...

Lululemon (LULU) came out with quarterly earnings of $3.15 per share, beating the Zacks Consensus Estimate of $2.92 per share. This compares to earnings of $2.68 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.88%. A quarter ago, it was expected that this athletic apparel maker would post earnings of $2.38 per share when it actually produced earnings of $2.54, delivering a surprise of 6.72%.Over the last four quarters, the c ...

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, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 28, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-33608 lululemon athletica inc. (Exact name of registrant as specified in its charter) Delaware 20-3842867 (State or other jurisdi ...

LULULEMON ATHLETICA INC. ANNOUNCES SECOND QUARTER FISCAL 2024 RESULTS Revenue increased 7% to $2.4 billion Comparable sales increased 2%, or 3% on a constant dollar basis Diluted EPS of $3.15 Vancouver, British Columbia – August 29, 2024 – lululemon athletica inc. (NASDAQ:LULU) today announced financial results for the second quarter of fiscal 2024, which ended on July 28, 2024. Calvin McDonald, Chief Executive Officer, stated: "In the second quarter, lululemon delivered revenue and earnings growth, with on ...

Signage at a Lululemon store in New York, US, on Thursday, Aug. 22, 2024. Lululemon Athletica Inc. is scheduled to release earnings figures on August 29.Lululemon missed Wall Street's fiscal second-quarter sales expectations and lowered its guidance Thursday after it botched a highly anticipated product launch and growth slowed in the Americas. The company now expects full year net revenue to be between $10.38 and $10.48 billion, down from a previous range of between $10.7 billion and $10.8 billion. Lululem ...

RADNOR, Pa., Aug. 29, 2024 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York against lululemon athletica inc. (“lululemon”) (NASDAQ: LULU) on behalf of investors who purchased or otherwise acquired lululemon securities between December 7, 2023 and July 24, 2024, inclusive (the “Class Period”). The case is assigned to the Honorab ...