Lululemon Athletica Inc reported a 9 per cent Year-on-Year (YoY) increase in net revenue for the third quarter (Q3) of fiscal 2024 (FY24), reaching $2.4 billion. International net revenue surged by 33 per cent (30 per cent on a constant dollar basis), while Americas net revenue rose by 2 per cent. Comparable sales increased by 4 per cent, driven by a 25 per cent rise in international markets, though Americas comparable sales declined by 2 per cent.
Lululemon’s Q3 FY24 net revenue rose 9 per cent YoY to $2.4 billion, driven by 33 per cent international growth.
Gross profit grew 12 per cent to $1.4 billion.
The company opened 28 stores, ending the quarter with 749.
FY24 revenue is projected at $10.45 billion-$10.49 billion.
CEO Calvin McDonald highlighted global momentum and holiday season strength.
Gross profit climbed 12 per cent to $1.4 billion, with gross margin expanding by 150 basis points to 58.5 per cent. Operating income jumped 45 per cent to $490.7 million, while operating margin improved by 520 basis points to 20.5 per cent. Diluted earnings per share rose to $2.87, compared to $1.96 in the same period last year.
The company opened 28 new stores during the quarter, including 14 through its acquisition of operations in Mexico, ending the quarter with 749 stores.
Lululemon expects fourth-quarter net revenue to be between $3.475 billion and $3.510 billion, reflecting growth of 8 per cent to 10 per cent. Full-year net revenue is projected to range from $10.452 billion to $10.487 billion, with diluted earnings per share expected between $14.08 and $14.16, the company said in a press release.
Under its ‘Power of Three ×2’ growth strategy, the company aims to double its 2021 net revenue of $6.25 billion to $12.5 billion by 2026, focusing on product innovation, guest experience, and market expansion.
“Our performance in the third quarter shows the enduring strength of lululemon globally, as we saw continued momentum across our international markets and in Canada. Looking to the future, we are pleased with the start to our holiday season, and we remain focused on accelerating our US business and growing our brand awareness around the world. Thank you to our dedicated teams for continuing to deliver for our guests and stakeholders,” said Calvin McDonald, chief executive officer.
“Our third quarter results, which exceeded our expectations, demonstrate the ability of our teams to be agile in a dynamic operating environment. With the majority of the fourth quarter still in front of us, we are focused on deepening engagement with our guests and bringing new consumers into the brand. We are committed to delivering on our Power of Three ×2 revenue target of $12.5 billion in 2026 and look forward to all that lies ahead,” stated Meghan Frank, chief financial officer.
Fibre2Fashion News Desk (HU)
