Board of Directors Authorizes $1.0 Billion
Increase in Its Stock Repurchase Program
Revenue increased 10% to $2.2
billion
Comparable sales increased 6%, or increased
7% on a constant dollar basis
Diluted EPS of $2.54
lululemon athletica inc. (NASDAQ:LULU) today announced financial
results for the first quarter of fiscal 2024, which ended on April
28, 2024.
Calvin McDonald, Chief Executive Officer, stated: "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 optimize our
U.S. 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."
For the first quarter of 2024, compared to the first quarter of
2023:
- Net revenue increased 10% to $2.2 billion, or increased 11% on
a constant dollar basis.
- Americas net revenue increased 3%, or 4% on a constant dollar
basis.
- International net revenue increased 35%, or 40% on a constant
dollar basis.
- Comparable sales increased 6%, or 7% on a constant dollar
basis.
- Americas comparable sales were flat compared to the first
quarter of 2023.
- International comparable sales increased 25%, or 29% on a
constant dollar basis.
- Gross profit increased 11% to $1.3 billion.
- Gross margin increased 20 basis points to 57.7%.
- Income from operations increased 8% to $432.6 million.
- Operating margin decreased 50 basis points to 19.6%.
- The effective income tax rate for the first quarter of 2024 was
29.5% compared to 29.1% for the first quarter of 2023.
- Diluted earnings per share were $2.54 compared to $2.28 in the
first quarter of 2023.
- The Company ended the first quarter of 2024 with 711
company-operated stores.
Meghan Frank, Chief Financial Officer, stated: "We reported
first quarter results ahead of our expectations as we operated with
agility and continued to make strategic investments in the
business. As we look to the rest of the year, we remain focused on
leveraging our strengths and differentiated model to advance our
Power of Three ×2 strategy and fuel performance. We are energized
by the opportunities in front of us and believe we are
well-positioned to drive sustainable, long-term growth."
Stock Repurchase Program
During the first quarter of 2024, the Company repurchased 0.8
million shares of its common stock for a cost of $296.9
million.
On May 29, 2024, the board of directors approved a $1.0 billion
increase to the Company's stock repurchase program. Including this
increase, as of June 5, 2024, the Company had approximately $1.7
billion remaining authorized on its stock repurchase program.
Balance Sheet Highlights
The Company ended the first quarter of 2024 with $1.9 billion in
cash and cash equivalents and the capacity under its committed
revolving credit facility was $393.8 million.
Inventories at the end of the first quarter of 2024 decreased
15% to $1.3 billion compared to $1.6 billion at the end of the
first quarter of 2023.
2024 Outlook
For the second quarter of 2024, the Company expects net revenue
to be in the range of $2.400 billion to $2.420 billion,
representing growth of 9% to 10%. Diluted earnings per share are
expected to be in the range of $2.92 to $2.97 for the quarter. This
assumes a tax rate of approximately 30%.
For 2024, the Company continues to expect net revenue to be in
the range of $10.700 billion to $10.800 billion, representing
growth of 11% to 12%, or 10% to 11% excluding the 53rd week of
2024. It continues to expect operating margin for the year to be
approximately 23.3%. Diluted earnings per share are now expected to
be in the range of $14.27 to $14.47 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 with respect
to 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 and the growth
strategy includes a plan to double men's, double e-commerce, and
quadruple international net revenue relative to 2021.
Conference Call Information
A conference call to discuss first quarter results is scheduled
for today, June 5, 2024, at 4:30 p.m. Eastern time. Those
interested in participating in the call are invited to dial
1-800-319-4610 or 1-604-638-5340, if calling internationally,
approximately 10 minutes prior to 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 a period of 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 wellbeing 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.
Non-GAAP Financial Measures
Constant dollar changes are non-GAAP financial measures. A
constant dollar basis assumes the average foreign currency exchange
rates for the period remained constant with the average foreign
currency exchange rates for the same period of the prior year. The
Company provides constant dollar changes in its results to help
investors understand the underlying growth rate of net revenue
excluding the impact of changes in foreign currency exchange rates.
Management uses these constant currency metrics internally when
reviewing and assessing financial performance.
The Company's fiscal year ends on the Sunday closest to January
31st of the following year, typically resulting in a 52-week year,
but occasionally giving rise to an additional week, resulting in a
53-week year. Fiscal 2023 was a 52-week year while 2024 will be a
53-week year. The expected net revenue increase excluding the 53rd
week excludes the expected net revenue for the 53rd week of 2024.
This enables an evaluation of the expected year-over-year increase
in net revenue based on 52 weeks in each year.
The presentation of this financial information is not intended
to be considered in isolation or as a substitute for, or with
greater prominence to, the financial information prepared and
presented in accordance with GAAP. For more information on these
non-GAAP financial measures, please see the section captioned
"Reconciliation of Non-GAAP Financial Measures" included in the
accompanying financial tables, which includes more detail on the
GAAP financial measure that is most directly comparable to each
non-GAAP financial measure, and the related reconciliations between
these financial measures. The Company's non-GAAP financial measures
may be calculated differently from, and therefore may not be
directly comparable to, similarly titled measures reported by other
companies.
Forward-Looking Statements:
This press release includes estimates, projections, statements
relating to the Company's business plans, objectives, and expected
operating results that are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995,
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. In many cases, you can identify
forward-looking statements by terms such as "may," "will,"
"should," "expects," "plans," "anticipates," "outlook," "believes,"
"intends," "estimates," "predicts," "potential" or the negative of
these terms or other comparable terminology. These forward-looking
statements also include the Company's guidance and outlook
statements. These statements are based on management's current
expectations but they involve a number of risks and uncertainties.
Actual results and the timing of events could differ materially
from those anticipated in the forward-looking statements as a
result of risks and uncertainties, which include, without
limitation: the Company's ability to maintain the value and
reputation of its brand; changes in consumer shopping preferences
and shifts in distribution channels; the acceptability of its
products to guests; its highly competitive market and increasing
competition; increasing costs and decreasing selling prices; its
ability to anticipate consumer preferences and successfully develop
and introduce new, innovative and updated products; its ability to
accurately forecast guest demand for its products; its ability to
expand in light of its limited operating experience and limited
brand recognition in new international markets and new product
categories; its ability to manage its growth and the increased
complexity of its business effectively; its ability to successfully
open new store locations in a timely manner; seasonality;
disruptions of its supply chain; its reliance on a relatively small
number of vendors to supply and manufacture a significant portion
of its products; suppliers or manufacturers not complying with its
Vendor Code of Ethics or applicable laws; its ability to deliver
its products to the market and to meet guest expectations if it has
problems with its distribution system; increasing labor costs and
other factors associated with the production of its products in
South Asia and South East Asia; its ability to safeguard against
security breaches with respect to its technology systems; its
compliance with privacy and data protection laws; any material
disruption of its information systems; its ability to have
technology-based systems function effectively and grow its
e-commerce business globally; climate change, and related
legislative and regulatory responses; increased scrutiny regarding
its environmental, social, and governance, or sustainability
responsibilities; an economic recession, depression, or downturn or
economic uncertainty in its key markets; global or regional health
events such as the COVID-19 pandemic and related government,
private sector, and individual consumer responsive actions; global
economic and political conditions; its ability to source and sell
its merchandise profitably or at all if new trade restrictions are
imposed or existing trade restrictions become more burdensome;
changes in tax laws or unanticipated tax liabilities; its ability
to comply with trade and other regulations; fluctuations in foreign
currency exchange rates; imitation by its competitors; its ability
to protect its intellectual property rights; conflicting trademarks
and patents and the prevention of sale of certain products; its
exposure to various types of litigation; and other risks and
uncertainties set out in filings made from time to time with the
United States Securities and Exchange Commission and available at
www.sec.gov, including, without limitation, its most recent reports
on Form 10-K and Form 10-Q. You are urged to consider these factors
carefully in evaluating the forward-looking statements contained
herein and are cautioned not to place undue reliance on such
forward-looking statements, which are qualified in their entirety
by these cautionary statements. The forward-looking statements made
herein speak only as of the date of this press release and the
Company undertakes no obligation to publicly update such
forward-looking statements to reflect subsequent events or
circumstances, except as may be required by law.
lululemon athletica inc.
The fiscal year ending February 2, 2025 is referred to as "2024"
and the fiscal year ended January 28, 2024 is referred to as
"2023".
Condensed Consolidated Statements of
Operations Unaudited; Expressed in thousands, except per share
amounts
First Quarter
2024
2023
Net revenue
$
2,208,891
$
2,000,792
Costs of goods sold
933,823
849,987
Gross profit
1,275,068
1,150,805
As a percentage of net revenue
57.7%
57.5%
Selling, general and administrative
expenses
842,426
747,513
As a percentage of net revenue
38.1%
37.4%
Amortization of intangible assets
—
1,878
Income from operations
432,642
401,414
As a percentage of net revenue
19.6%
20.1%
Other income (expense), net
23,283
8,025
Income before income tax expense
455,925
409,439
Income tax expense
134,504
119,034
Net income
$
321,421
$
290,405
Basic earnings per share
$
2.55
$
2.28
Diluted earnings per share
$
2.54
$
2.28
Basic weighted-average shares
outstanding
125,989
127,246
Diluted weighted-average shares
outstanding
126,336
127,621
lululemon athletica inc. Condensed
Consolidated Balance Sheets Unaudited; Expressed in thousands
April 28, 2024
January 28,
2024
April 30, 2023
ASSETS
Current assets
Cash and cash equivalents
$
1,900,672
$
2,243,971
$
950,607
Inventories
1,345,267
1,323,602
1,580,313
Prepaid and receivable income taxes
192,955
183,733
182,393
Other current assets
329,193
309,271
339,989
Total current assets
3,768,087
4,060,577
3,053,302
Property and equipment, net
1,561,185
1,545,811
1,312,793
Right-of-use lease assets
1,263,749
1,265,610
993,471
Goodwill and intangible assets, net
23,992
24,083
44,123
Deferred income taxes and other
non-current assets
211,482
195,860
167,855
Total assets
$
6,828,495
$
7,091,941
$
5,571,544
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable
$
261,605
$
348,441
$
287,464
Accrued liabilities and other
374,446
348,555
342,751
Accrued compensation and related
expenses
132,911
326,110
125,053
Current lease liabilities
254,443
249,270
210,506
Current income taxes payable
53,087
12,098
30,213
Unredeemed gift card liability
268,296
306,479
223,970
Other current liabilities
38,783
40,308
36,814
Total current liabilities
1,383,571
1,631,261
1,256,771
Non-current lease liabilities
1,147,631
1,154,012
888,582
Non-current income taxes payable
15,864
15,864
28,555
Deferred income tax liability
29,150
29,522
54,533
Other non-current liabilities
32,471
29,201
23,027
Stockholders' equity
4,219,808
4,232,081
3,320,076
Total liabilities and stockholders'
equity
$
6,828,495
$
7,091,941
$
5,571,544
lululemon athletica inc. Condensed
Consolidated Statements of Cash Flows Unaudited; Expressed in
thousands
First Quarter
2024
2023
Cash flows from operating activities
Net income
$
321,421
$
290,405
Adjustments to reconcile net income to net
cash provided by operating activities
(193,897
)
(244,902
)
Net cash provided by operating
activities
127,524
45,503
Net cash used in investing activities
(131,537
)
(138,219
)
Net cash used in financing activities
(328,628
)
(115,399
)
Effect of foreign currency exchange rate
changes on cash and cash equivalents
(10,658
)
3,855
Decrease in cash and cash equivalents
(343,299
)
(204,260
)
Cash and cash equivalents, beginning of
period
2,243,971
1,154,867
Cash and cash equivalents, end of
period
$
1,900,672
$
950,607
lululemon athletica inc.
Reconciliation of Non-GAAP Financial Measures Unaudited
Constant dollar changes
The below changes show the change for the first quarter of 2024
compared to the first quarter of 2023.
Net Revenue
Increase
Foreign exchange
Increase in constant
dollars
United States
2%
—%
2%
Canada
11
1
12
Americas
3
1
4
China Mainland
45
7
52
Rest of World
27
3
30
Total international
35
5
40
Total
10%
1%
11%
Comparable Sales(1)
Increase
Foreign exchange
Increase in constant
dollars
Americas
—%
—%
—%
China Mainland
26
7
33
Rest of World
23
3
26
Total international
25
4
29
Total
6%
1%
7%
__________
(1)
Comparable sales includes comparable company-operated store and
e-commerce net revenue. Comparable company-operated stores have
been open for at least 12 full fiscal months, or open for at least
12 full fiscal months after being significantly expanded.
Comparable company-operated stores exclude stores which have been
temporarily relocated for renovations or have been temporarily
closed.
Expected net revenue increase excluding the 53rd week
The Company's fiscal year ends on the Sunday closest to January
31st of the following year, typically resulting in a 52-week year,
but occasionally giving rise to an additional week, resulting in a
53-week year. Fiscal 2023 was a 52-week year while 2024 will be a
53-week year.
Fiscal 2024
Expected net revenue increase
11% to 12%
Impact of 53rd week
(1)%
Expected net revenue increase excluding
the 53rd week (non-GAAP)
10% to 11%
lululemon athletica inc.
Company-operated Store Count and Square Footage(1) Square footage
expressed in thousands
Number of Stores Open at the
Beginning of the Quarter
Number of Stores Opened During
the Quarter
Number of Stores Closed During
the Quarter
Number of Stores Open at the
End of the Quarter
2nd Quarter 2023
662
12
2
672
3rd Quarter 2023
672
15
1
686
4th Quarter 2023
686
26
1
711
1st Quarter 2024
711
5
5
711
Total Gross Square Feet at the
Beginning of the Quarter
Gross Square Feet Added During
the Quarter(2)
Gross Square Feet Lost During
the Quarter(2)
Total Gross Square Feet at the
End of the Quarter
2nd Quarter 2023
2,632
64
5
2,691
3rd Quarter 2023
2,691
109
3
2,797
4th Quarter 2023
2,797
173
3
2,967
1st Quarter 2024
2,967
35
14
2,988
__________
(1)
Company-operated store count and square
footage summary excludes retail locations operated by third parties
under license and supply arrangements.
(2)
Gross square feet added/lost during the
quarter includes net square foot additions for company-operated
stores which have been renovated or relocated in the quarter.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240605223567/en/
Investor Contact: lululemon athletica inc. Howard Tubin
1-604-732-6124 or ICR, Inc. Joseph Teklits/Caitlin Churchill
1-203-682-8200 Media Contact: lululemon athletica inc. Erin
Hankinson 1-604-732-6124 or lululemon athletica inc. Madi Wallace
1-604-732-6124
Lululemon Athletica (NASDAQ:LULU)
過去 株価チャート
から 5 2024 まで 6 2024
Lululemon Athletica (NASDAQ:LULU)
過去 株価チャート
から 6 2023 まで 6 2024
