| Board of Directors Authorizes $1.0 Billion Increase in Its Stock Repurchase Program |
| Revenue increased 9% to $2.4 billion |
| Comparable sales increased by 4%, or 3% on a constant dollar basis |
| Diluted EPS of $2.87 |
| Lululemon Athletica Inc. (NASDAQ: LULU) today announced financial results for the third quarter of fiscal 2024, which ended on October 27, 2024. |
| Calvin McDonald, Chief Executive Officer, stated: "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 of our holiday season, and we remain focused on accelerating our U.S. business and growing our brand awareness around the world. Thank you to our dedicated teams for continuing to deliver for our guests and stakeholders." |
| The adjusted non-GAAP financial measures below exclude asset impairment and other charges recognized about Lululemon Studio during the third quarter of 2023, and the related income tax effects of these items. |
| For the third quarter of 2024, compared to the third quarter of 2023: |
- Net revenue increased 9% to $2.4 billion or increased 8% on a constant dollar basis.
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- America's net revenue increased by 2%.
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- International net revenue increased 33%, or 30% on a constant dollar basis.
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- Comparable sales increased 4%, or 3% on a constant dollar basis.
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- America's comparable sales decreased by 2%.
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- International comparable sales increased 25%, or 22% on a constant dollar basis.
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- Gross profit increased 12% to $1.4 billion. Adjusted gross profit increased 9%.
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- Gross margin increased 150 basis points to 58.5%. Adjusted gross margin increased by 40 basis points.
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- Income from operations increased 45% to $490.7 million. Adjusted income from operations increased 12%.
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- Operating margin increased 520 basis points to 20.5%. Adjusted operating margin increased by 70 basis points.
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- The effective income tax rate for the third quarter of 2024 was 30.2% compared to 28.5% for the third quarter of 2023. The adjusted effective tax rate was 28.1% for the third quarter of 2023.
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- Diluted earnings per share were $2.87 compared to $1.96 in the third quarter of 2023. Adjusted diluted earnings per share were $2.53 in the third quarter of 2023.
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- The Company added 28 new company-operated stores during the third quarter, including 14 company-operated stores from the acquisition of the Mexico operations, ending with 749 stores.
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| Meghan Frank, Chief Financial Officer, stated: "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." |
| Stock Repurchase Program |
| During the third quarter of 2024, the Company repurchased 1.6 million shares of its common stock for a cost of $408.5 million. |
| On December 3, 2024, the board of directors approved a $1.0 billion increase to the Company's stock repurchase program. Including this increase, as of December 5, 2024, the Company had approximately $1.8 billion remaining authorized on its stock repurchase program. |
| Balance Sheet Highlights |
| The Company ended the third quarter of 2024 with $1.2 billion in cash and cash equivalents and the capacity under its committed revolving credit facility was $393.5 million. |
| Inventories at the end of the third quarter of 2024 increased 8% to $1.8 billion compared to $1.7 billion at the end of the third quarter of 2023. |
| 2024 Outlook |
| For the fourth quarter of 2024, the Company expects net revenue to be in the range of $3.475 billion to $3.510 billion, representing growth of 8% to 10%, or 3% to 4% excluding the 53rd week of 2024. Diluted earnings per share are expected to be in the range of $5.56 to $5.64 for the quarter. This assumes a tax rate of approximately 29.5%. |
| For 2024, the Company now expects net revenue to be in the range of $10.452 billion to $10.487 billion, representing growth of 9%, or 7% excluding the 53rd week of 2024. Diluted earnings per share are now expected to be in the range of $14.08 to $14.16 for the year. This assumes a tax rate of approximately 30%. |
| The guidance does not reflect potential future repurchases of the Company's shares. |
| The guidance and outlook forward-looking statements made in this press release are based on management's expectations as of the date of this press release and do not incorporate future unknown impacts, including macroeconomic trends. The Company undertakes no duty to update or to continue to provide information concerning any forward-looking statements or risk factors, whether as a result of new information or future events or circumstances or otherwise. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of risks and uncertainties, including those stated below. |
| Power of Three ×2 |
| The Company's Power of Three ×2 growth plan calls for a doubling of the business from 2021 net revenue of $6.25 billion to $12.5 billion by 2026. The key pillars of the plan are product innovation, guest experience, and market expansion. |
| Conference Call Information |
| A conference call to discuss third-quarter results is scheduled for today, December 5, 2024, at 4:30 p.m. Eastern time. Those interested in participating in the call are invited to dial 1-844-763-8274 or 1-647-484-8814 if calling internationally, approximately 10 minutes before the start of the call. A live webcast of the conference call will be available online at: https://corporate.lululemon.com/investors/news-and-events/events-and-presentations. A replay will be made available online approximately two hours following the live call for 30 days. |
| About Lululemon Athletica Inc. |
| Lululemon Athletica Inc. (NASDAQ: LULU) is a technical athletic apparel, footwear, and accessories company for yoga, running, training, and most other activities, creating transformational products and experiences that build meaningful connections, unlocking greater possibility and well-being for all. Setting the bar in innovation of fabrics and functional designs, lululemon works with yogis and athletes in local communities around the world for continuous research and product feedback. For more information, visit lululemon.com. |
| For the full document click the link below: |
| lululemon athletica inc |
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