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Canadian firm Lululemon Athletica's revenue soars 10% in Q1 FY24

06 Jun '24

2 min read

Canadian firm Lululemon Athletica's revenue soars 10% in Q1 FY24

Pic: JHVEPhoto - stock.adobe.com

Insights

Lululemon Athletica reported a 10 per cent rise in Q1 FY24 net revenue to $2.2 billion, with an 11 per cent increase on a constant dollar basis.
International net revenue surged 35 per cent. Comparable sales grew 6 per cent.
Gross profit rose 11 per cent to $1.3 billion.
Diluted EPS increased to $2.54.
The company ended the quarter with 711 stores.

Lululemon Athletica, a Canada-based multinational athletic apparel company, has reported an increase in net revenue by 10 per cent year-on-year (YoY) to $2.2 billion in the first quarter of fiscal 2024 (Q1 FY24), marking an 11 per cent increase on a constant dollar basis. The Americas segment saw a modest net revenue increase of 3 per cent, or 4 per cent on a constant dollar basis. However, the international segment demonstrated impressive performance with a 35 per cent increase in net revenue, or 40 per cent on a constant dollar basis.

Comparable sales for Lululemon climbed 6 per cent, translating to a 7 per cent rise on a constant dollar basis. While comparable sales in the Americas remained flat compared to Q1 FY23, international comparable sales soared by 25 per cent, or 29 per cent on a constant dollar basis.

Gross profit for the quarter increased by 11 per cent, reaching $1.3 billion. The gross margin also saw a slight improvement, increasing by 20 basis points to 57.7 per cent. Despite this, income from operations grew by 8 per cent to $432.6 million, while the operating margin experienced a decrease of 50 basis points, settling at 19.6 per cent, the company said in its Q1 FY24 results.

Lululemon’s diluted earnings per share (EPS) were $2.54, a significant rise from $2.28 in the first quarter of FY23.

The company concluded Q1 FY24 with a total of 711 company-operated stores, reflecting its continued expansion and strong market presence.

"In the first quarter, we saw strong momentum in our international markets, demonstrating how our brand continues to resonate around the world. Guests responded well to our product innovations across categories, and we are pleased by the progress we are making to optimise our US product assortment. Looking ahead, we continue to have a significant runway for growth and are confident in our team’s ability to powerfully deliver for our guests in 2024 and beyond," said Calvin McDonald, chief executive officer.

Fibre2Fashion News Desk (DP)

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