Financial Data and Key Metrics Changes - The company reported consolidated net sales for fiscal 2024 decreased by 3% to $1.52 billion, with a notable impact from a 53rd week in 2023 contributing approximately $16 million to sales [16][17] - Adjusted EPS for the fourth quarter was $6.68, at the top end of guidance [20] - Adjusted gross margin contracted by 80 basis points to 63.2%, primarily due to a higher proportion of sales during promotional events [17][23] Business Line Data and Key Metrics Changes - Sales in full-price brick-and-mortar locations decreased by 2%, while e-commerce sales fell by 4% [16][17] - Food and beverage and outlet locations saw a 13% sales increase, driven by new locations [17] - The wholesale channel experienced a 10% decline, with a $31 million decrease attributed to struggles in the specialty store business [17] Market Data and Key Metrics Changes - Comparable store sales (comps) increased by 2% in December but fell by 3% in January and further declined by 9% in February [6][16] - The company anticipates a cautious consumer environment, with expectations of hesitance in spending between major shopping events [7][22] Company Strategy and Development Direction - The company focuses on maximizing long-term shareholder value, owning a portfolio of lifestyle brands, evoking happiness in consumers, and generating cash for reinvestment [8][10] - Plans for fiscal 2025 include enhancing the omni-channel platform, opening approximately 20 new stores, and completing a new distribution center [14][15][29] - The company aims to protect brand integrity and avoid short-term fixes that could harm long-term prospects [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term opportunities despite current headwinds, emphasizing the importance of controlling controllables [7][10] - The outlook for fiscal 2025 includes projected net sales between $1.49 billion and $1.53 billion, with expectations of a decline in comps [22][23] - Management noted that the first half of fiscal 2025 may see strong sales due to upcoming holidays, but overall consumer spending is expected to remain cautious [6][7] Other Important Information - The company has initiated a $100 million share repurchase program and increased its quarterly dividend by 3% [15][29] - Inventory at the end of fiscal 2024 was up 5%, primarily due to early shipments from Asia ahead of new tariffs [20][21] Q&A Session Summary Question: Insights on first quarter guidance and headwinds - Management noted Lilly is performing well, while other brands are experiencing some challenges, particularly with the Easter shift affecting March comps [32][33] Question: Observations on wholesale partners' order books - Management acknowledged concerns about major retailers pulling back orders but highlighted strong performance on retail floors [36][37] Question: Details on Johnny Was brand performance and plans - Management indicated a focus on improving retail performance and rebuilding the wholesale business, with an emphasis on classic collection products [38][39] Question: Customer response to new product assortments - Management confirmed that newness in product assortments is driving business, particularly in major brands like Tommy Bahama and Lilly Pulitzer [43][46] Question: Tariff impacts and mitigation strategies - Management discussed the anticipated tariff impact of $9 million to $10 million and ongoing efforts to mitigate these costs through various strategies [68][70]

Financial Performance - The company's revenue increased by 3.9% year on year, reaching 28.68 billion RMB, with a gross profit margin up by one percentage point to 49.4% [3][35] - Net profit was 3.13 billion RMB, with a net profit margin of 10.5%, reflecting a decrease of 0.5 percentage points compared to the previous year [3][15] - Operating cash flow rose by 12.4% to 5.27 billion RMB, with a healthy operating cash over revenue ratio of 7.4% [4][19] Business Line Performance - Footwear accounted for 50% of total revenue, growing by 7% year on year, which was a key driver of overall business growth [6] - The online business environment improved, leading to a 2 percentage point increase in revenue share from e-commerce to 31% [6] - Direct retail revenue decreased by 1% year on year, primarily due to the optimization of store structure [10][11] Market Performance - Offline retail sales declined by a low single digit, while online sales grew by 10% to 20% [9] - The number of points of sale (POS) decreased by 83 to a total of 7,585, with a notable reduction in direct retail stores [7][8] - The company maintained a healthy inventory turnover of four months, with inventory aging structure stabilizing at 80% for new products [15][16] Strategic Direction and Industry Competition - The company aims to enhance brand value through sports marketing and product innovation, focusing on core categories such as running, basketball, and fitness [24][25] - The strategy includes a single brand with multiple categories and channels to improve market competitiveness [24] - The company is committed to innovation in new sports segments and enhancing its professional product matrix [25][30] Management Commentary on Operating Environment and Future Outlook - The management expressed confidence in the medium to long-term growth of China's athletic footwear and apparel industry, despite current challenges [21][20] - For 2025, the company expects flat revenue growth and plans to increase investment in brand building and core categories [21] - The management highlighted the importance of maintaining operational efficiency and adapting to market changes [39][42] Other Important Information - The company recommended a final dividend of 20.73 cents per share, increasing the total dividend payout from 45% to 50% [4] - The company has been recognized as the official apparel partner of the Chinese Olympic Committee for the period of 2025 to 2028 [33] Q&A Session Summary Question: What are the expectations for revenue growth in 2025? - The company expects full-year revenue to remain flat year on year, focusing on sustainable growth in core categories [21] Question: How is the company addressing challenges in offline retail? - The company is optimizing channel structures and enhancing operational efficiency to adapt to declining customer traffic [39] Question: What is the strategy for e-commerce growth? - The company is investing in differentiated strategies for various e-commerce platforms to improve customer traffic and sales conversion rates [42]

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 ...

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, ...

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Credit: Pixabay/CC0 Public Domain When the United States starts a trade war with your country, how do you fight back? For individuals, one option is to wage a personal trade war and boycott products from the US. President Donald Trump has said no nation will be exempt from his tariffs, and this includes both Australia and New ...

Core Viewpoint - Nike reported better-than-expected earnings and revenue for its fiscal third quarter, but the stock price fell sharply due to management's cautious outlook for the upcoming quarter, indicating potential further declines in revenue and profitability [2][4][6]. Financial Performance - Nike's earnings were $0.54 per share, surpassing analyst expectations of $0.29, but down from $0.77 in the same quarter last year [4]. - Revenue decreased by 9% year over year to $11.3 billion [4]. - Direct-to-consumer sales fell by 12% year over year, while wholesale revenue declined by 7% [5]. Strategic Challenges - The company is undergoing a strategic reset to recover from past decisions made during the COVID pandemic, which included a focus on new styles and a reduction in wholesale partnerships [3]. - Nike is currently working to rebuild relationships with wholesale partners and clear excess inventory, even at the expense of profitability [3]. Management Outlook - Management expects short-term headwinds to worsen in fiscal Q4, with revenue projected to decline in the mid-teens range [6][8]. - Gross profit margin is anticipated to decrease by 400 to 500 basis points year over year [8]. Market Conditions - External factors such as geopolitical dynamics, new tariffs, volatile foreign exchange rates, and tax regulations are contributing to uncertainty in the operating environment, impacting consumer confidence [7]. Investment Sentiment - Despite Nike's strong brand, the current strategic reset and ongoing revenue declines create significant uncertainty, leading to a recommendation for investors to remain cautious and possibly wait for clearer signs of recovery before investing [9].

Financial Data and Key Metrics Changes - For the third quarter, revenues decreased by 9% on a reported basis and 7% on a currency-neutral basis, with strong holiday results in December followed by double-digit declines in January and February [33][32] - Gross margins declined by 330 basis points to 41.5% due to higher markdowns, wholesale discounts, inventory obsolescence, and product costs [33][34] - Earnings per share was reported at $0.54, with SG&A expenses down 8% on a reported basis [34][32] Business Line Data and Key Metrics Changes - The performance business saw growth, particularly in training and running, while Nike sportswear and the Jordan brand experienced declines, especially in classic footwear franchises [35][32] - Running products grew mid-single digits, with notable success from the PEG 41 and Vomero 18 [19][20] - Sportswear footwear, including the Varvero five and Nike Shox, showed significant revenue growth, with the Varvero five doubling its revenue this quarter [22][23] Market Data and Key Metrics Changes - North America revenue declined by 4%, with NIKE Direct down 10% and NIKE Digital down 12% [41][42] - In EMEA, revenue declined by 6%, with NIKE Digital down 25% and NIKE stores up 9% [42][43] - Greater China saw a 15% revenue decline, with NIKE Direct down 11% and NIKE Digital down 20% [44][45] Company Strategy and Development Direction - The company is focusing on five strategic actions termed "Win Now," which include igniting a winning culture, shaping the brand for distinction, accelerating product portfolio, elevating marketplace growth, and winning on the ground [8][9] - There is a commitment to innovate across performance and sportswear categories, with a focus on diversifying the product portfolio and minimizing reliance on classic franchises [26][50] - The company aims to clean up the marketplace and reposition NIKE Digital as a full-price business, reducing promotional days and markdown rates [52][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by global economic uncertainty but expressed confidence in the strategic actions taken to drive progress [8][30] - The company expects Q4 to reflect the largest impact from the WinNow actions, with revenue and gross margin headwinds beginning to moderate thereafter [55][54] - There is a focus on serving athletes through innovative products and reigniting brand momentum, with confidence in the product pipeline for the upcoming seasons [57][86] Other Important Information - The company is actively working to enhance its brand presence through significant marketing investments, particularly during major sports events [39][32] - A new brand, NIKE SKIMS, was announced, targeting a new market segment with style-led products [25][26] Q&A Session Summary Question: Timeline for cleaning classic shoe inventories in wholesale and direct channels - Management emphasized the importance of the five Win Now actions and expressed confidence in rightsizing inventory for classic franchises, expecting a reduction in contribution by 10 percentage points by the end of Q4 [64][70] Question: Thoughts on innovation strength and pipeline - Management expressed confidence in the innovation team and highlighted upcoming products from both performance and sportswear categories, with excitement about the spring 2026 product line [74][78] Question: Balancing promotions while amplifying storytelling - Management outlined a strategy to return unsold products from wholesale partners to liquidate through value channels while elevating the presentation of new products in both digital and physical spaces [91][94]

Core Viewpoint - Lululemon is anticipated to report a year-over-year increase in earnings and revenues for the quarter ended January 2025, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on March 27, 2025, with a consensus EPS estimate of $5.85, reflecting a +10.6% change year-over-year. Revenues are projected to be $3.58 billion, an increase of 11.6% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.29% over the last 30 days, indicating a reassessment by analysts [4]. However, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +2% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. Lululemon currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [11]. Historical Performance - Lululemon has consistently beaten consensus EPS estimates, achieving this in the last four quarters, including a +6.69% surprise in the most recent quarter [12][13]. Conclusion - While Lululemon is positioned as a compelling earnings-beat candidate, it is essential to consider other factors that may influence stock performance beyond just the earnings report [14][16].

Core Viewpoint - Burberry Group PLC (BURBY) has experienced a bearish trend, losing 13.5% in the past week, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be increasing [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, with reduced selling pressure, suggesting that bulls may be gaining control [2][4]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that despite a downtrend, buying interest emerges at lower prices [3][4]. - The occurrence of a hammer pattern at the bottom of a downtrend signals that bears may be losing control, which could lead to a trend reversal [4]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for BURBY, which is a bullish indicator, as it typically correlates with price appreciation [6]. - Over the last 30 days, the consensus EPS estimate for BURBY has increased by 8.1%, indicating that analysts expect better earnings than previously predicted [7]. - BURBY holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, suggesting strong potential for outperformance in the market [8].

Financial Data and Key Metrics Changes - For fiscal year 2025, net sales increased by 2.7% to $3.18 billion, driven by over 20% growth in key owned brands [7][56] - Non-GAAP net income for the fourth quarter was $58 million or $1.27 per diluted share, compared to $36 million or $0.76 per diluted share in the previous year [55] - Full fiscal year 2025 non-GAAP net income was $204 million, up 9% from $190 million, with earnings per diluted share increasing to $4.42 from $4.04 [60][65] Business Line Data and Key Metrics Changes - The retail segment's net sales for the year were $166 million, up from $148 million, with strong double-digit comparable-store sales growth in DKNY and Karl Lagerfeld stores [57] - The wholesale segment's net sales increased to $3.08 billion, a 2.5% rise from $3.01 billion [56] - Donna Karan's relaunch was highly successful, with expectations of a 40% growth in the business going forward [97][110] Market Data and Key Metrics Changes - Calvin Klein and Tommy Hilfiger businesses collectively represented approximately 34% of total sales, down from over 50% two years ago, with expectations of further decline to about 25% by the end of fiscal 2026 [8] - DKNY achieved mid-teen growth, with approximately $675 million in reported net sales for fiscal 2025 [21][28] - Karl Lagerfeld saw over 20% growth, particularly strong in North America, which grew approximately 35% [29][34] Company Strategy and Development Direction - The company aims to drive growth of owned brands, which now represent just over half of total net sales, focusing on higher operating margins and licensing income [12][14] - Significant investments in marketing and technology are planned to enhance operational capabilities and support brand growth [11][46] - The partnership with All We Wear Group (AWWG) is expected to accelerate international growth, particularly in Spain and Portugal [10][63] Management's Comments on Operating Environment and Future Outlook - The management acknowledged a challenging operating environment but expressed confidence in navigating through it, expecting fiscal 2026 net sales of approximately $3.14 billion, a decrease of about 1% compared to 2025 [49][50] - Management highlighted the importance of adapting to market conditions, including tariff impacts and inventory management strategies [67][69] - The company anticipates continued growth in key owned brands, with a long-term goal of reaching over $5 billion in annual net sales [49][63] Other Important Information - The company ended the fiscal year with a solid inventory position, decreasing approximately 8% to $478 million [61] - A significant focus on enhancing omnichannel capabilities and digital sales is evident, with owned digital sites growing over 20% [46][44] - The company plans to invest approximately $50 million in capital expenditures for new brand launches and technology [71] Q&A Session Summary Question: Context on headwinds and impact of PVH licenses - Management indicated that the fall of Calvin Klein businesses was approximately $200 million, which was offset by growth in other areas [78] Question: Insights on Q4 outperformance and PVH revenue decline - Management clarified that Q4 performance was not due to unique shifts in wholesale shipments, and the decline in PVH revenues was anticipated [92][94] Question: Current size of the Donna Karan business - Management did not disclose specific figures but noted it was the best launch with anticipated growth approaching 40% [97][110] Question: Details on gross margin in Q4 - Management highlighted stronger margins from owned businesses and improved performance in outerwear [100] Question: Trends in wholesale orders and DTC development - Management reported similar order trends to the previous year and emphasized improvements in direct-to-consumer operations [114][116]