Lululemon Reports Strong Q1 2024 Financial Results
Lululemon Athletica Inc., announced its financial results for the first quarter of fiscal 2024, which ended on April 28, 2024. CEO Calvin McDonald highlighted strong international market momentum and successful product innovations, emphasizing that the brand continues to resonate globally.
For the first quarter of 2024, Lululemon reported a 10% increase in net revenue to $2.2 billion, or 11% on a constant dollar basis. Revenue in the Americas grew by 3%, while international revenue surged by 35%, or 40% on a constant dollar basis. Comparable sales rose by 6%, with international comparable sales jumping by 25%. Gross profit increased by 11% to $1.3 billion, resulting in a gross margin of 57.7%. Income from operations also saw an 8% rise to $432.6 million, although the operating margin decreased by 50 basis points to 19.6%. Diluted earnings per share were $2.54, up from $2.28 in the first quarter of 2023. The company ended the quarter with 711 company-operated stores.
CFO Meghan Frank noted that the first quarter results exceeded expectations due to strategic investments and operational agility. Looking ahead, Lululemon remains focused on leveraging its strengths and advancing the Power of Three ×2 strategy to drive sustainable, long-term growth.
During the first quarter of 2024, Lululemon repurchased 0.8 million shares for $296.9 million. On May 29, 2024, the board approved a $1.0 billion increase to the stock repurchase program, leaving $1.7 billion authorized for future repurchases. The company ended the quarter with $1.9 billion in cash and cash equivalents and a credit facility capacity of $393.8 million. Inventories decreased by 15% to $1.3 billion compared to the end of the first quarter of 2023.
Looking ahead, Lululemon expects net revenue for the second quarter of 2024 to be between $2.400 billion and $2.420 billion, with diluted earnings per share ranging from $2.92 to $2.97. For the full year 2024, the company projects net revenue between $10.700 billion and $10.800 billion, with diluted earnings per share between $14.27 and $14.47. This guidance excludes potential future share repurchases.
The Power of Three ×2 growth plan aims to double Lululemon’s business from 2021 net revenue to $12.5 billion by 2026. The plan focuses on product innovation, enhancing the guest experience, and expanding market reach, including doubling men’s revenue, doubling e-commerce, and quadrupling international revenue relative to 2021.
