Key Summary of Lulu’s Q1 2024 Results
Lulu’s share price pops 10% during the after-hours trading session. It’s due to fairly good quarterly results that slightly meet the market expectation.
🏦Financials:
📌Revenue: Net revenue increased 10% year-over-year to $2.2 billion, representing an 11% increase on a constant dollar basis. This indicates continued customer demand for their athletic apparel.
📌Comparable Sales: Comparable sales growth was 6%, or 7% on a constant dollar basis. This suggests an increase in sales at existing stores.
📌Profitability: Gross profit increased 11% to $1.3 billion, with a gross margin increase of 20 basis points to 57.7%. Income from operations rose 8% to $432.6 million, although operating margin decreased slightly by 50 basis points to 19.6%.
📌Earnings per Share (EPS): Diluted earnings per share were $2.54, compared to $2.28 in Q1 2023, reflecting a year-over-year increase.
👖Positive Developments:
📌Comparable Sales: Comparable sales growth was 6%, or 7% on a constant dollar basis. This suggests an increase in sales at existing stores.
📌Profitability: Gross profit increased 11% to $1.3 billion, with a gross margin increase of 20 basis points to 57.7%. Income from operations rose 8% to $432.6 million, although operating margin decreased slightly by 50 basis points to 19.6%.
📌Earnings per Share (EPS): Diluted earnings per share were $2.54, compared to $2.28 in Q1 2023, reflecting a year-over-year increase.
👖Positive Developments:
🩳International Sales Strength: Strong performance in international markets boosted overall results, highlighting successful global expansion.
🩳Inventory Management: Inventories decreased 15% compared to the previous year, indicating efficient inventory control.
🩳Increased Guidance: Based on these positive results, Lululemon lifted its full-year earnings guidance for fiscal year 2024.
Overall, Lululemon's Q1 2024 results were positive. They achieved solid revenue growth, maintained profitability, and exhibited efficient inventory management. The strong international sales performance and increased guidance suggest continued optimism for the company's future.
🩳Inventory Management: Inventories decreased 15% compared to the previous year, indicating efficient inventory control.
🩳Increased Guidance: Based on these positive results, Lululemon lifted its full-year earnings guidance for fiscal year 2024.
Overall, Lululemon's Q1 2024 results were positive. They achieved solid revenue growth, maintained profitability, and exhibited efficient inventory management. The strong international sales performance and increased guidance suggest continued optimism for the company's future.
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