Market Updates

Lululemon Athletica Inc. plunged 12.1% to $301.03, and the sports apparel retailer's results surpassed market expectations, but a weak outlook and tariff worries overshadowed the results. 

Revenue increased to $3.6 billion from $3.2 billion a year ago, net income jumped to $748.4 million from $669.45 million, and diluted earnings per share rose to $6.14 from $5.29 a year ago.

Improved results were driven by higher net revenue in all company segments: Americas, China, and the rest of the world.

Global comparable sales increased 3%, or 4% on a constant dollar basis.

Sales in the Americas region increased 7%, or 8% on a constant dollar basis, with comparable sales remaining flat in the quarter.

Sales in China surged 46%, or 48% on a constant dollar basis, with comparable sales advancing 26%, or 27% on a constant dollar basis.

Lululemon guided for fiscal 2025 revenue to be between $11.15 billion and $11.30 billion, or growth of only 5% to 7%, compared to $10.59 billion in 2024.

Diluted earnings per share are expected to be between $14.95 and $15.15 per share for the year, compared to $14.64 per share in 2024.

For the first quarter of 2025, the company estimated net revenue to be between $2.33 billion and $2.35 billion, or growth of 6% to 7%, compared to $2.21 billion a year ago, and diluted earnings per share between $2.53 and $2.58, compared to $2.54 in the same quarter a year ago.

China's net revenue was $425.0 million, or 12% of total revenue, compared to $290.7 million, or 9% of total revenue, in the fourth quarter of 2023.

Lululemon opened 13 new stores in China during the quarter, three net new stores in the Americas, and two new stores in its rest of the world segment.

Total company-operated stores at the end of the quarter increased to 747, compared to 711 for the same period in 2023.

During the quarter, the company repurchased 0.9 million shares for $332.2 million.


28 Mar, 2025

     

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