Lululemon Athletica, Inc. reported net revenue increased 13 percent year-over-year to $3.6 billion, or 14 percent on a constant dollar (cd) basis, for the fiscal year ended February 2, 2025.

  • Americas net revenue increased 7 percent (+8 percent cd) year-over-year (y/y) in Q4.
  • International net revenue increased 38 percent (+40 percent cd) year-over-year in Q4.

Excluding net revenue from the 53rd week of 2024, net revenue increased 8 percent year-over-year in Q4.

Comparable sales, which excludes net revenue from the 53rd week of 2024, increased 3 percent (+4 percent cd).

  • Americas comparable sales were flat compared to the fourth quarter of 2023.
  • International comparable sales increased 20 percent (+22 percent cd) in the 2024 fourth quarter.

Gross profit increased 15 percent to $2.2 billion in Q4 2024 and gross margin increased 100 basis points y/y to 60.4 percent of sales.

Income from operations increased 14 percent to $1.0 billion and operating margin increased 40 basis points to 28.9 percent.

The effective income tax rate for the fourth quarter of 2024 was 29.2 percent compared to 28.1 percent for the fourth quarter of 2023.

Diluted earnings per share were $6.14 in Q4 compared to $5.29 in the fourth quarter of 2023.

The company repurchased 0.9 million of its shares for a cost of $332.2 million.

The company opened 18 net new company-operated stores during the quarter, ending with 767 stores.

“Our fourth quarter results exceeded our expectations as we continued to introduce more newness and innovation into our product assortment,” offered Calvin McDonald, CEO, Lululemon Athletica Inc. “Our performance demonstrates the ongoing strength and resilience of lululemon and is a testament to the passion and dedication of our teams around the world. As we begin 2025, we remain focused on executing on our Power of Three ×2 growth plan and delivering an exciting pipeline of innovation and brand activations for our guests and communities.”

Fiscal 2024 Compared to Fiscal 2023
Net revenue increased 10 percent (+11 percent cd) to $10.6 billion in 2024.

  • Americas net revenue increased 4 percent.
  • International net revenue increased 34 percent (+36 percent cd).

Excluding net revenue from the 53rd week of 2024, net revenue increased 8 percent.

Comparable sales, which excludes net revenue from the 53rd week of 2024, increased 4 percent.

  • Americas comparable sales decreased 1 percent.
  • International comparable sales increased 22 percent (+24 percent cd).

Gross profit increased 12 percent to $6.3 billion in 2024. Adjusted gross profit increased 11 percent year-over-year.

Gross margin increased 90 basis points to 59.2 percent of sales in 2024. Adjusted gross margin increased 60 basis points year-over-year.

Income from operations increased 17 percent to $2.5 billion in 2024. Adjusted income from operations increased 12 percent year-over-year.

Operating margin increased 150 basis points to 23.7 percent in 2024. Adjusted operating margin increased 50 basis points.

The effective income tax rate was 29.6 percent for 2024 compared to 28.8 percent for 2023. The adjusted effective tax rate was 28.7 percent for 2023.

Diluted earnings per share were $14.64 compared to $12.20 per share in 2023. Adjusted diluted earnings per share were $12.77 in 2023.

The company repurchased 5.1 million shares for a cost of $1.6 billion.

The company added 56 net new company-operated stores during the year, including 14 company-operated stores from the acquisition of the Mexico operations, ending with 767 stores.

“We are pleased to deliver another solid year of performance in 2024 and surpass $10 billion in annual revenue for the first time,” added company CFO Meghan Frank. “We look forward to building on our growth in 2025, while remaining agile as we navigate ongoing macro uncertainties. There are significant opportunities ahead for the Lululemon brand and we are confident in our ability to continue creating long-term value for all our stakeholders.”

Balance Sheet Highlights
The company ended 2024 with $2.0 billion in cash and cash equivalents and it had $393.9 million of available capacity under its committed revolving credit facility.

Inventories at the end of 2024 increased by 9 percent year-over-year to $1.4 billion.

Fiscal 2025 Outlook
For the first quarter of 2025, the company expects net revenue to be in the range of $2.335 billion to $2.355 billion, representing growth of 6 percent to 7 percent for the quarter. Diluted earnings per share are expected to be in the range of $2.53 to $2.58 for the quarter. This assumes a tax rate of approximately 30 percent.

For full year 2025, the company expects net revenue to be in the range of $11.150 billion to $11.300 billion, representing growth of 5 percent to 7 percent, or 7 percent to 8 percent excluding the 53rd week of 2024. Diluted earnings per share are expected to be in the range of $14.95 to $15.15 for the year. This assumes a tax rate of approximately 30 percent.

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.

Image courtesy Lululemon Athletica, Inc.