Lululemon meets Street with Q1 revenue; net income falls
Lululemon Athletica Inc. slightly exceeded Wall Street expectations with net revenue as net income slipped in the first quarter of fiscal 2025.
The athleisure apparel retailer reported first quarter net revenue of $2.37 billion, up 7% from $2.21 billion in the first quarter of fiscal 2024 and largely in line with Wall Street predictions of $2.36 billion. Americas net revenue increased 3%, or 4% on a constant dollar basis. International net revenue increased 19%, or 20% on a constant dollar basis.
Net income fell roughly 2% year-over-year to $314.57 million from $321.42 million. Same-store sales 1% from the same quarter a year earlier. Americas same-store sales decreased 2%, or 1% on a constant dollar basis, while international comparable sales increased 6%, or 7% on a constant dollar basis.
"In the first quarter, we achieved growth across channels, categories, and markets, including the U.S., reflecting the continued strength and agility of our business model,” said Calvin McDonald, CEO, Lululemon Athletica. “As we navigate the dynamic macroenvironment, we intend to leverage our strong financial position and competitive advantages to play offense, while we continue to invest in the growth opportunities in front of us."
2025 Outlook
For the second quarter of 2025, Lululemon expects net revenue to be in the range of $2.53 billion to $2.56 billion, representing growth of 7% to 8%. Diluted earnings per share are expected to be in the range of $2.85 to $2.90 for the quarter.
For full-year 2025, Lululemon continues to expect net revenue to be in the range of $11.15 billion to $11.3 billion, representing growth of 5% to 7%, or 7% to 8% excluding the 53rd week of 2024. Diluted earnings per share are now expected to be in the range of $14.58 to $14.78 for the year.
Second quarter and full-year guidance assumes a tax rate of approximately 30%. Lululemon previously said it will continue to open stores in existing markets and enter several new countries this year, including Italy as a new company operated market and Denmark, Belgium, Turkey and the Czech Republic under a franchise model.
[READ MORE: Lululemon Q4 tops Street, expects ‘modest’ growth; to enter several new countries]
"We delivered first quarter revenue growth at the high end of our guidance and are pleased with the start to our second quarter,” said Meghan Frank, CFO, Lululemon Athletica. “Looking ahead, we remain focused on our strategy and continue to operate with discipline as we drive the business forward. We are grateful to our teams around the world who are enabling us to deliver these consistent results."
Lululemon added three net new company-operated stores during the first quarter, ending with 770 locations.
