Lululemon Athletica Inc Reports Second Quarter Fiscal 2024 Financial Results
Intellectia.AI Updated: 2024-08-29
Lululemon Athletica Inc. Reports Second Quarter Fiscal 2024 Financial Results
Lululemon Athletica Inc. has reported its financial results for the second quarter of fiscal 2024, which ended on July 28, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Total Revenue | $2.4 billion | $2.2 billion | +7% |
| Earnings Per Share (EPS) | $3.15 | $2.68 | +17.5% |
Interpretation: Lululemon Athletica reported strong financial performance with total revenue of $2.4 billion, reflecting a 7% year-over-year increase. Their EPS of $3.15 shows a significant enhancement by 17.5% compared to the same period last year, indicating robust profitability.
Segment Revenue Performance
| Segment | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Americas | $1.46 billion | $1.42 billion | +3% |
| China Mainland | $420 million | $347 million | +21% |
| Rest of World (APAC & EMEA) | $520 million | $461 million | +13% |
Interpretation: The key contributors to revenue growth were the China Mainland and the Rest of World segments, showing 21% and 13% year-over-year growth respectively. The Americas segment also experienced a 3% increase, demonstrating the company's expanding global footprint.
Key Developments and Operational Highlights
- Expansion in China Mainland with the opening of 25 net new stores since Q2 2023.
- Opened 15 net new stores in the Americas since Q2 2023.
- Continued focus on executing the omni-channel retail strategy, noted by the conversion of e-commerce and physical sales channels.
- Announced plans to acquire operations and retail locations in Mexico for approximately $160.0 million in cash.
Comments from Company Officers
CEO noted, "We are delighted with our performance this quarter, driven by exceptional growth in the China Mainland and Rest of World segments. Our ongoing investments in product innovation, guest experience, and international expansion are paying off."
The CFO added, "Our strong financial results underscore our effective strategy execution. Despite macroeconomic challenges, we continue to achieve significant sales and earnings growth while maintaining a strong balance sheet."
Dividends and Share Repurchase Program
- No dividends announced.
- During the first two quarters of 2024, the company repurchased 2.6 million shares at a total cost including commissions and excise taxes of $888.9 million. The remaining authorized value for share repurchases under the existing program is $1.3 billion.
Forward Guidance
No forward guidance was provided.
Stock Price Movement
Lululemon Athletica's stock price saw a post-earnings adjustment of approximately +0.07%
Note: Ensure to cross-verify summarized financials with the available data as slight discrepancies may cause misinterpretation.
The report has been organized into a clear and concise format suitable for investors.
