Canadian athletic apparel retailer Lululemon athletica delivered a strong performance in 2024, surpassing $10bn in annual revenue and beating fourth quarter results expectations.
Net revenue in fiscal 2024 (FY24) increased 11% to $10.58bn on a constant dollar basis, from the previous year’s $9.61bn.
The retailer experienced a 4% revenue rise in the Americas, while international net revenue saw a substantial 36% jump.
Comparable sales rose 4%, with international comparable sales surging 22%, partly offset by a slight 1% dip in the Americas.
Lululemon saw its gross profit climb 12% to $6.27bn in FY24, increasing from $5.60bn in fiscal 2023, and its gross margin improve by 90 basis points to 59.2%.
The retailer’s operational income also saw an uptick, with a 17% increase to $2.50bn, resulting in operating margin growth by 150 basis points to 23.7%.
Net income for the company stood at $1.81bn in FY24, up from $1.55bn in FY23, while diluted earnings per share (EPS) increased to $14.64 from $12.20 in the previous year.
Lululemon chief financial officer Meghan Frank stated: “We are pleased to deliver another solid year of performance in 2024 and surpass $10bn in annual revenue for the first time.”
In the fourth quarter (Q4) of 2024 alone, Lululemon reported a net revenue increase of 14% to $3.61bn and a comparable sales rise of 3%.
The company’s gross profit rose 15% to $2.18 over the quarter, with gross margin improving by 100 basis points to 60.4%.
Lululemon added 56 net new company-operated stores over the fiscal year, and now has 767 stores.
Lululemon chief executive officer Calvin McDonald stated: “Our fourth quarter results exceeded our expectations as we continued to introduce more newness and innovation into our product assortment. Our performance demonstrates the ongoing strength and resilience of lululemon and is a testament to the passion and dedication of our teams around the world. As we begin 2025, we remain focused on executing on our Power of Three ×2 growth plan, and delivering an exciting pipeline of innovation and brand activations for our guests and communities.”
Looking ahead to the first quarter of fiscal 2025, Lululemon anticipates net revenue between $2.33bn and $2.35bn, representing growth of between 6% and 7%.
Diluted EPS is projected to be between $2.53 and $2.58 for the quarter.
In the full fiscal year 2025, net revenue is expected to range between $11.15bn and $11.300bn, signalling a growth rate of 5% to 7%. It expects full year EPS in the range of 14.95 to $15.15.
Frank added: “We look forward to building on our growth in 2025, while remaining agile as we navigate ongoing macro uncertainties. There are significant opportunities ahead for the lululemon brand and we are confident in our ability to continue creating long-term value for all our stakeholders.”
