lululemon(US:LULU) ZACKS·2024-08-30 17:56Core Insights - Lululemon athletica inc. (LULU) reported second-quarter fiscal 2024 earnings that exceeded expectations, with earnings per share (EPS) of $3.15, a 17.5% increase year over year, while sales fell short of estimates after eight consecutive quarters of surpassing them [1][4][9] - The company is continuing its Power of Three X2 growth plan but has lowered its revenue and EPS guidance for fiscal 2024 due to macroeconomic uncertainties [1][9][11] Financial Performance - LULU's quarterly revenues increased by 7.3% year over year to $2.371 billion, but missed the Zacks Consensus Estimate of $2.404 billion [4][9] - Gross profit rose 8.8% year over year to $1.4 billion, with a gross margin expansion of 80 basis points to 59.6% [5][6] - Operating income increased by 12.7% year over year to $540.2 million, with an operating margin of 22.8%, up 110 basis points [6][10] Sales Channels - Total comparable sales rose 2% year over year, with a 3% increase on a constant-dollar basis [4][5] - In the Americas, comparable sales declined by 3%, while international comparable sales increased by 19% [5][9] Store Expansion Plans - LULU opened 11 company-operated stores and closed one in the second quarter, with plans to open 14 more in the third quarter [7][9] - The company anticipates opening 35-40 company-operated stores for fiscal 2024, primarily in international markets [7][12] Guidance and Projections - For the third quarter of fiscal 2024, LULU expects net revenues of $2.34-$2.365 billion, indicating 6-7% year-over-year growth [9][10] - The company has revised its fiscal 2024 revenue guidance to $10.375-$10.475 billion, suggesting 8-9% year-over-year growth, down from earlier projections [11][12] Shareholder Returns - LULU repurchased 1.9 million shares for $583.7 million in the second quarter, with $1 billion remaining under its current share repurchase authorization [8][12]