lululemon athletica inc. Reports Third Quarter Fiscal 2024 Financial Results
Vancouver, BC — lululemon athletica inc. (NASDAQ:LULU) announced its financial results for the third quarter of fiscal 2024, ending on October 27, 2024. The company showcased solid performance across various financial metrics.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change | Q2 2024 | QoQ Change |
|---|---|---|---|---|---|
| Total Revenue | $2.4 billion | $2.2 billion | +9% | $2.0 billion | +20% |
| Diluted Earnings Per Share | $2.87 | $1.96 | +46% | $2.68 | +7% |
lululemon's financial performance in Q3 2024 highlighted a robust growth momentum, with a 9% year-over-year increase in revenue to $2.4 billion and an impressive 46% rise in diluted earnings per share. The company also reported significant quarter-over-quarter growth, underscoring strong operational execution.
Revenue Performance by Segment
| Segment | Q3 2024 Revenue | YoY Change |
|---|---|---|
| Americas | $1.5 billion | +2% |
| International | $0.9 billion | +33% |
International markets continue to propel revenue growth, with a notable 33% year-over-year increase, reflecting lululemon's expanding global footprint.
Key Developments and Operational Highlights
- Added 28 new company-operated stores, including 14 from the acquisition of Mexico operations, reaching a total of 749 stores.
- Gross profit increased by 12% to $1.4 billion, while the gross margin increased by 150 basis points to 58.5%.
- The board authorized a $1.0 billion increase in the stock repurchase program, adding to the $1.8 billion already authorized.
Comments from Company Leadership
Calvin McDonald, Chief Executive Officer, expressed satisfaction with the company's strong third-quarter performance, accentuating the momentum in international markets. McDonald emphasized the focus on enhancing brand awareness and accelerating growth in the U.S. market as they enter the holiday season.
Meghan Frank, Chief Financial Officer, reiterated the company's commitment to the Power of Three ×2 growth strategy, aimed at reaching $12.5 billion in revenue by 2026, and highlighted the agile response of their teams in a dynamic market environment.
Dividends and Share Repurchase Program
Alongside the stock repurchase initiatives, lululemon did not announce any dividends, continuing its focus on strategic buybacks to enhance shareholder value.
Forward Guidance
For the fourth quarter of 2024, lululemon projects net revenue between $3.475 billion and $3.510 billion, with expected diluted earnings per share ranging from $5.56 to $5.64. The full fiscal year 2024 outlook estimates revenue between $10.452 billion and $10.487 billion, with EPS forecasted between $14.08 and $14.16.
In conclusion, lululemon athletica inc. delivered a robust third quarter, driven by international expansion and strategic operational enhancements, setting a strong foundation for future growth.
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