Company Performance - Lululemon athletica inc. reported fourth-quarter fiscal 2024 revenues of $3.61 billion, a 13.6% year-over-year increase, surpassing the Zacks Consensus Estimate of $3.58 billion [5] - The company's earnings per share (EPS) for the fourth quarter was $6.14, reflecting a 16.1% increase from the adjusted EPS of $5.29 in the prior-year quarter, and exceeding the Zacks Consensus Estimate of $5.85 [2] - The company has achieved a 19% revenue compound annual growth rate (CAGR) since 2021, with adjusted EPS growing at a 23% CAGR [3] Sales and Revenue Breakdown - Net revenues in the Americas grew 7% on a reported basis and 8% on a constant-dollar basis, while international revenues surged 38% (40% on a constant-dollar basis) [5] - Total comparable sales rose 3% year over year, with a 20% increase internationally [6][8] - Digital revenues contributed $1.8 billion, accounting for 50% of total revenues, with an 8% year-over-year improvement [8] Profitability Metrics - Gross profit increased 15% year over year to $2.2 billion, with a gross margin expansion of 100 basis points to 60.4% [9] - Operating income rose 14% year over year to $1 billion, with an operating margin of 28.9%, expanding 40 basis points [12] Future Outlook - For fiscal 2025, Lululemon anticipates net revenues of $11.15-$11.3 billion, indicating 5-7% year-over-year growth [23] - The company expects a gross margin decline of 60 basis points year over year due to fixed cost deleverage and foreign exchange headwinds [24] - Lululemon plans to open 40-50 net new company-operated stores in fiscal 2025, aiming for a 10% increase in square footage [15] Financial Position - As of the end of fiscal 2024, Lululemon had cash and cash equivalents of $2 billion and stockholders' equity of $4.3 billion [16] - The company repurchased 5.1 million shares for $1.6 billion in fiscal 2024, with $1.3 billion remaining under its current share repurchase authorization [17] Strategic Initiatives - Lululemon continues to implement its Power of Three X2 growth strategy, focusing on enhancing brand awareness and supporting international growth [3][25] - The company is entering new markets, including Italy and several countries through a franchise model, while optimizing existing store operations [14][15]

Core Insights - Lululemon reported a strong fourth quarter for 2024, with revenue growth of 13% and earnings per share increasing by 16%, surpassing analyst expectations [2][3] - Despite the solid performance, the company's guidance for fiscal 2025 is weak, projecting revenue growth of only 5% to 7%, which is below analyst consensus [3][4] - Increased competition and a challenging macroeconomic environment are significant concerns for Lululemon moving forward [4][6] Financial Performance - Q4 2023 revenue was $3.21 billion, increasing to $3.61 billion in Q4 2024, representing a 13% growth [1] - Earnings per share rose from $5.29 to $6.14, marking a 16% increase [1] - Comparable sales grew by 12% in Q4 2024, but this was a decline of 9 percentage points compared to the previous year [1] Market Reaction - Following the earnings report, Lululemon's shares fell approximately 6% in after-hours trading due to the disappointing guidance for 2025 [5] - The stock has shown volatility over the past few years, with little change compared to three years ago [5] Competitive Landscape - Lululemon faces increasing competition from newer brands like Vuori and Alo Yoga, which are impacting its market position [4][6] - International revenue grew significantly by 38% year over year, driven by new store openings and a 20% rise in comparable sales [2][6] - The company needs to focus on revitalizing comparable sales growth in the U.S. market [6]

Financial Data and Key Metrics Changes - In Q4, total revenue excluding the 53rd week increased by 8% or 9% on a constant currency basis, reaching $3.6 billion [10][47] - Operating margin increased by 40 basis points to 28.9%, and earnings per share rose by 16% [11] - For the full year 2024, total revenue was $10.6 billion, with an adjusted operating margin increase of 50 basis points to 23.7% and adjusted earnings per share growth of 15% [12][45] - The company repurchased $332 million of stock in Q4, totaling $1.6 billion for the year, reflecting confidence in long-term prospects [11][54] Business Line Data and Key Metrics Changes - In Q4, men's revenue increased by 12%, women's by 6%, and accessories and other grew by 9% [49] - The outerwear and second layers performed well for both women and men, with strong guest response to new product launches [14][19] Market Data and Key Metrics Changes - In the Americas, revenue increased by 2% or 3% in constant currency, with comparable sales flat; Canada saw an 11% increase, while the U.S. increased by 1% [47] - China Mainland revenue surged by 38% or 39% in constant currency, with comparable sales up by 27% [47] - The Rest of World revenue grew by 22% or 26% in constant currency, with comparable sales increasing by 17% [47] Company Strategy and Development Direction - The company aims to increase brand awareness, particularly in markets like France, Germany, and Japan, where awareness is currently low [24][25] - Plans for 2025 include a 10% growth in square footage through new store openings and optimizations, with a focus on international expansion [39][57] - The product pipeline for 2025 includes several new innovations and updates to existing franchises, aiming to drive guest acquisition and loyalty [22][39] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a cautious consumer environment due to macroeconomic factors, impacting traffic but noted positive responses to new product offerings [36][37] - The company expects modest growth in U.S. revenue for 2025, with a focus on controlling internal factors while navigating external challenges [38][41] - Confidence remains in the Power of Three x2 strategy, with ongoing investments in brand awareness and product innovation [60][68] Other Important Information - The company ended Q4 with approximately $2 billion in cash and cash equivalents, with inventory increasing by 9% [54] - Capital expenditures for Q4 were $235 million, primarily for business growth investments [53] Q&A Session Summary Question: Clarification on modest U.S. revenue growth expectations - Management defined modest growth as low-single-digit to mid-single-digit for the U.S., with Q1 not trending materially differently than Q4 [78][79] Question: Marketing strategy effectiveness and customer acquisition - Management reported strong engagement from community-based activations and noted thousands of guests registered for events, indicating effective customer acquisition strategies [85][88] Question: Tariff impact and mitigation strategies - Current guidance includes a 20 basis point headwind from tariffs, with ongoing monitoring and potential pricing adjustments if necessary [91] Question: International growth plans and activations - Management emphasized a customized approach to activations based on market maturity, with plans for significant engagement in new markets like Japan and South Korea [98] Question: Margin guidance and flexibility in cost structure - Management indicated that FX and tariff headwinds account for over 50% of the expected 100 basis point decline in operating margin for 2025, with flexibility in SG&A depending on sales performance [100][122]

Market Overview - Markets experienced volatility, ending lower with the Dow down -155 points (-0.37%), S&P 500 down -18 points (-0.33%), Nasdaq down -94 points (-0.53%), and Russell 2000 down -0.39% [1] - The uncertainty surrounding tariffs and their potential consequences is hindering market advancement, with current levels down -2% to -4% from a month ago [2] Housing Market - Pending Home Sales increased by +2.0%, surpassing the +1.0% expected by analysts, recovering from a previous decline of -4.6% [3] - Year-over-year, pending home sales are down -3.6%, with regional performance showing the South up +6.2%, Midwest up +0.7%, Northeast down -0.9%, and West down -3.0% [3][4] lululemon athletica (LULU) Performance - lululemon reported Q4 earnings of $6.14 per share, exceeding the $5.85 consensus and $5.29 from the previous year, with revenues of $3.61 billion, slightly above the expected $3.58 billion [5] - Comparable sales increased by +3% overall, with the Americas flat and International up +22%, but guidance for the current quarter and full fiscal year was disappointing, leading to a -7.5% drop in shares during late trading [6] - The company's cautious outlook is influenced by tariff policies, contributing to a year-to-date decline of -10% in stock value [6]

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 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, ...