Lululemon Exceeds Expectations in Q4 2024, Sets Sights on Global Brand Awareness
Lululemon athletica Inc. recently released its fourth quarter and full-year 2024 financial results, exceeding revised guidance and solidifying the company's position as a leader in the global athletic apparel market.
According to Calvin McDonald, CEO of Lululemon, the company saw total revenue increase by 8% or 9% on a constant currency basis in Q4, with operating margin increasing by 40 basis points to 28.9%. Earnings per share also rose by 16%, demonstrating the company's continued growth and success.
The full-year results were equally impressive, with total revenue reaching $10.6 billion, an increase of 8% or 9% in constant currency. Adjusted operating margin increased by 50 basis points to 23.7%, and adjusted earnings per share grew by 15%. Since the start of its current Power of Three x2, 5-year plan in 2021, Lululemon has achieved remarkable growth, with revenue increasing at a CAGR of 19% and adjusted operating margin rising by 170 basis points.
The company's focus on innovation and product development has been instrumental in driving its success. In Q4, outerwear and second layers performed well for both women and men, while accessories, including bags, continued to be popular. McDonald highlighted the company's robust pipeline of innovation, which he believes will enable Lululemon to meet the expectations of its guests and drive further growth.
Lululemon's commitment to raising global brand awareness remains a key strategy for the company. McDonald emphasized the importance of this initiative in expanding the company's reach and driving sales. With a strong product pipeline and a focus on building brand recognition, Lululemon is well-positioned to continue its upward trajectory.
Looking ahead, Meghan Frank, CFO, provided guidance for Q1 and full-year 2025, indicating that the company expects continued growth and success. The conference call was attended by analysts and investors, who were able to ask questions and gain insights into Lululemon's performance and future prospects.
