Lululemon Athletica recently released its 10-Q report, providing a detailed insight into the company's financial performance. Lululemon Athletica Inc. is a designer, distributor, and retailer of athletic apparel, footwear, and accessories under the lululemon brand for women and men. The company operates through a chain of company-operated stores, outlets, interactive workout platforms, yoga and fitness studios, and e-commerce platforms. It has a global presence across the United States, Canada, Mainland China, Australia, and various other regions.
In the second quarter of 2024, Lululemon reported a 7% increase in net revenue to $2.4 billion, with a constant dollar increase of 8%. The gross profit increased by 9% to $1.4 billion, and the gross margin increased by 80 basis points to 59.6%. The company reported an income from operations of $540.2 million, marking a 13% increase, with an operating margin increase of 110 basis points to 22.8%. The diluted earnings per share were reported at $3.15, compared to $2.68 in the second quarter of 2023.
The company's performance was influenced by various market conditions and trends. Lululemon experienced traffic growth in all markets but saw a moderation in net revenue growth in the Americas. The United States specifically saw a decline in net revenue in the second quarter of 2024 compared to the same period in 2023. Additionally, foreign currency fluctuations adversely impacted the company's financial results, reducing the growth of net revenue by $43.9 million.
Lululemon's net revenue for the second quarter of 2024 saw an increase in all segments. In the Americas, net revenue increased by 1%, while China Mainland and Rest of World net revenue increased by 34% and 24%, respectively. The company attributed these increases to various factors such as new store openings and growth in comparable sales.
The report also highlighted the company's financial highlights, including the increase in net revenue, gross profit, and income from operations. It also provided a breakdown of the company's financial performance, including net revenue, gross profit, selling, general and administrative expenses, and amortization of intangible assets. Following these announcements, the company's shares moved 0.1%, and are now trading at a price of $259.01. Check out the company's full 10-Q submission here.
