lululemon(LULU) - 2023 Q4 - Annual Results

Revenue Growth - Fourth quarter revenue increased 16% to $3.2 billion, with diluted EPS of $5.29[1] - Full year revenue increased 19% to $9.6 billion, with diluted EPS of $12.20 and adjusted EPS of $12.77[1] - Net revenue for Q4 2023 increased to $3,205,103 thousand, up 16% from $2,771,838 thousand in Q4 2022[19] - Total net revenue for fiscal 2023 grew 19% to $9,619,278 thousand from $8,110,518 thousand in fiscal 2022[19] - For 2024, the company expects net revenue of $10.700 billion to $10.800 billion, representing growth of 11% to 12%, and diluted EPS of $14.00 to $14.20[6] - Q1 2024 net revenue is expected to be in the range of $2.175 billion to $2.200 billion, representing growth of 9% to 10%, with diluted EPS of $2.35 to $2.40[6] - Expected net revenue increase for fiscal 2024 is projected at 11%, with a 1% impact from the 53rd week[33] International Performance - International net revenue increased 54% in Q4 and 54% for the full year, with constant dollar growth of 56% and 58% respectively[1][2] - China Mainland net revenue increased by 78% in Q4 2023 and 67% for fiscal 2023[27] Profitability and Margins - Gross margin increased 430 basis points to 59.4% in Q4 and 290 basis points to 58.3% for the full year[1][3] - Operating margin increased to 28.5% in Q4 from 11.3% in the prior year, and increased 580 basis points to 22.2% for the full year[1][4] - Gross profit margin for Q4 2023 improved to 59.4%, up from 55.1% in Q4 2022[19] - Net income for Q4 2023 surged to $669,468 thousand, compared to $119,811 thousand in Q4 2022[19] - Adjusted diluted earnings per share for fiscal 2023 was $12.77, compared to $12.20 on a GAAP basis[29] Store Expansion and Operations - The company repurchased 1.5 million shares for $554.6 million in 2023 and opened 56 net new stores, ending the year with 711 stores[4] - The company opened 26 new stores in Q4 2023, bringing the total number of stores to 711[36] - Company-operated store total gross square feet increased to 2,967 thousand by the end of Q4 2023, up from 2,575 thousand in Q1 2023[39] - Q4 2023 saw the highest gross square feet addition of 173 thousand compared to previous quarters[39] - Net square foot additions for Q4 2023 were 3 thousand, consistent with Q3 2023[39] - Company-operated store count grew by 64 in Q1 and Q2 2023, then increased by 109 in Q3 2023[39] - Gross square feet added in Q3 2023 was 109 thousand, the highest among the first three quarters[39] Financial Position and Cash Flow - The company ended 2023 with $2.2 billion in cash and cash equivalents, up from $1.2 billion at the end of 2022, and inventories decreased by 9% to $1.3 billion[5] - Cash and cash equivalents at the end of fiscal 2023 stood at $2,243,971 thousand, up from $1,154,867 thousand in fiscal 2022[22] Strategic Growth Plans - The Power of Three ×2 growth plan aims to double the business from 2021 net revenue of $6.25 billion to $12.5 billion by 2026[8] Comparable Sales Performance - Comparable sales increased by 12% in Q4 2023 and 13% for fiscal 2023[25]