Lululemon keeps up momentum with strong Q4
Lululemon Athletica Inc. turned in another winning quarterly performance with earnings and sales that beat estimates. It also provided an upbeat outlook for its new fiscal year.
The athletic apparel, footwear and accessories retailer reported that its revenue rose to $2.771 billion in the quarter ended Jan. 29, from $2.129 billion from the prior year period. Total comparable sales increased 27%. Comparable store sales rose 15%, while direct-to-consumer net revenue increased 37%.
Net income fell to $119.8 million, or $0.94 per share, in the quarter ended Jan.29, from $434.5 million, or $3.36 per share, in the year-ago quarter. Excluding impairment and other charges related to its 2020 acquisition of home fitness platform Mirror, as well as other items, adjusted per-share earnings were $4.40, beating analysts’ estimates of $4.26.
In October, Lululemon launched Lululemon Studio, a new service accessible through the rebranded Lululemon Studio Mirror platform, Lululemon app and in-person experiences.
“Our continued high level of performance is a reflection of the hard work and agility of our incredible teams and the deep connections they create with our guests and communities around the world,” said CEO Calvin McDonald. “As we enter 2023, we look forward to another year of strong momentum across the globe and delivering on our Power of Three ×2 growth plan."
For the full year, Lululemon’s net revenue increased 30% to $8.1 billion. Total comparable sales increased 25%.
Lululemon’s 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 strategy include product innovation and a plan to double men's, double direct-to-consumer, and quadruple international net revenue relative to 2021.
[Read More: Lululemon aims to double revenue by 2026; launching two-tier monthly memberships]
Lululemon ended 2022 with $1.2 billion in cash and cash equivalents compared to $1.3 billion at the end of 2021. It had $393.5 million of capacity under its committed revolving credit facility at the end of 2022.
“Looking ahead, we remain optimistic regarding our ability to deliver sustained growth and long-term value for all our stakeholders,” stated CFO Meghan Frank.
The company expects fiscal 2023 revenue of between $9.3 billion and $9.41 billion, topping analysts’ expectations of $9.14 billion. Full-year profit is expected to range from $11.50 to $11.72 per share, compared with Street estimates of $11.26 per share.
Lululemon opened 32 net company-operated stores during the fourth quarter, for a total of 655 stores.