Lululemon Athletica ( (LULU) ) has released its Q4 earnings. Here is a breakdown of the information Lululemon Athletica presented to its investors.
Lululemon Athletica Inc., a leading company in the technical athletic apparel, footwear, and accessories industry, is renowned for its innovative products designed for yoga, running, and training activities. The company recently announced its financial results for the fourth quarter and full fiscal year 2024, showcasing a strong performance with significant revenue growth.
In the fourth quarter of 2024, Lululemon reported a 13% increase in revenue, reaching $3.6 billion, and a diluted earnings per share (EPS) of $6.14. For the full year, revenue rose by 10% to $10.6 billion, with a diluted EPS of $14.64. This growth was driven by a robust international revenue increase of 38% in the fourth quarter, and a 34% rise for the full year, highlighting the company’s successful global expansion efforts.
Key financial metrics for the quarter included a 15% increase in gross profit to $2.2 billion and a gross margin improvement of 100 basis points to 60.4%. Operating income also saw a 14% rise, reaching $1.0 billion, with an operating margin of 28.9%. The company opened 18 new stores during the quarter, bringing the total to 767 stores worldwide. For the full year, Lululemon’s income from operations increased by 17% to $2.5 billion, with a 150 basis point rise in operating margin to 23.7%.
Looking ahead, Lululemon’s management remains optimistic about the company’s growth prospects, focusing on its Power of Three ×2 growth plan, which aims to double the business by 2026. The company expects continued revenue growth in fiscal 2025, projecting a 5% to 7% increase, with plans to further enhance its product innovation and market expansion strategies.