Companies /Consumer Cyclical

Lululemon Athletica Inc

NASDAQ: LULU Apparel Retail
$94.46
▼ $1.40 (−1.46%) today
Markets closed · 8:56am ET

Q3 2024 Earnings

Reported Dec 5, 2024, 4:11pm ET · SEC source
$2.87
Beat +5.48%
EPS · est. $2.72 GAAP

Prior-year Q3 2023 GAAP EPS of $1.96 included $74.5 million in lululemon Studio charges (asset impairments, restructuring costs, obsolescence provision); no such charges in Q3 2024. Current quarter has no disclosed one-time items.

$2.4B
Beat +1.67%
Revenue · est. $2.4B
+3.5%
Beating market
LULU vs S&P since report
8 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%0+6%+12%Dec 5Dec 6report 4:11pm ETearnings+0.2%+8.1%
−6%0+6%+12%Dec 5Dec 6earnings+0.2%+8.1%
LULU +8.1%S&P 500 +0.2%
−6%0+6%+12%Dec 5Dec 6report 4:11pm ETearnings+0.8%+8.1%
−6%0+6%+12%Dec 5Dec 6earnings+0.8%+8.1%
LULU +8.1%NASDAQ +0.8%
−6%0+6%+12%Dec 4Dec 13report 4:11pm ETearnings−0.4%+4.4%
−6%0+6%+12%Dec 4Dec 13earnings−0.4%+4.4%
LULU +4.4%S&P 500 −0.4%
−6%0+6%+12%Dec 4Dec 13report 4:11pm ETearnings+1.6%+4.4%
−6%0+6%+12%Dec 4Dec 13earnings+1.6%+4.4%
LULU +4.4%NASDAQ +1.6%
+15.89%
Day of report
+1.30%
Next session
−1.99%
One week
−1.03%
30 days

S&P 500 over the same 30 days: −4.49%.

Did LULU Beat Earnings? Q3 2024 Results

Lululemon posted a stronger-than-expected third quarter, with GAAP diluted EPS of $2.87 beating the $2.72 consensus by 5.48% and net revenue of $2.40 billion topping estimates by 1.67% on 8.7% year-over-year growth, sending shares surging roughly 19% in the aftermath. The headline driver was a sharp geographic divergence: international markets delivered 33% revenue growth, led by a 39% surge in China Mainland, more than compensating for a 2% Americas decline that included essentially flat U.S. revenue. Gross margin expanded 150 basis points to 58.5%, while the prior-year GAAP EPS of $1.96 had absorbed $74.50 million in lululemon Studio impairment and restructuring charges not repeated this quarter. The company also repurchased 1.6 million shares for $408.50 million and expanded its buyback authorization by $1.00 billion. Looking ahead, Lululemon guided Q4 revenue to $3.48 billion to $3.51 billion and full-year 2024 revenue to $10.45 billion to $10.49 billion, with diluted EPS of $14.08 to $14.16, reaffirming its longer-term Power of Three x2 target of $12.50 billion in revenue by 2026.

Key Takeaways
  • Strong international momentum with 33% revenue growth (30% constant currency)
  • China Mainland revenue growth of 39% (36% constant currency)
  • Gross margin expansion of 150 basis points to 58.5%
  • Comparable sales increase of 4% (3% constant currency)
  • Operating margin expansion of 520 basis points to 20.5% (GAAP)

“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 to 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.”

Lululemon CEO, on the earnings call

Forward Guidance & Outlook

For Q4 2024, net revenue is expected at $3.475B–$3.510B (8%–10% growth, or 3%–4% excluding the 53rd week), with diluted EPS of $5.56–$5.64, assuming a 29.5% tax rate. For full-year 2024, net revenue is expected at $10.452B–$10.487B (9% growth, or 7% excluding the 53rd week), with diluted EPS of $14.08–$14.16, assuming a 30% tax rate. Guidance does not reflect potential future share repurchases. The company reaffirmed its Power of Three ×2 revenue target of $12.5 billion in 2026.

LULU YoY Financials

Q3 2024 vs Q3 2023 · SEC filings Q3 2023 Q3 2024
$0$700.0M$1.4B$2.1B$2.2B$2.4BRevenue$1.3B$1.4BGross Profit$338.1M$490.7MOperating Income$248.7M$351.9MNet Income
$0$700.0M$1.4B$2.1BRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.