International markets drive Lululemon's Q1 results

For the first quarter, Lululemon Athletica reported a net revenue increase of 10 percent or 11 percent in constant dollars to 2.2 billion dollars. Comparable sales for the quarter increased 6 percent or 7 percent on a constant dollar basis.

The company's Power of Three ×2 growth plan calls for a doubling of the business from 2021 net revenue of 6.25 billion dollars to 12.5 billion dollars by 2026. The growth strategy includes a plan to double men's and e-commerce and quadruple international net revenue relative to 2021.

Commenting on the first quarter update, Calvin McDonald, the company’s 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."

Lululemon posts considerable increase in international revenue

Revenues in the Americas increased 3 percent or 4 percent on a constant dollar basis, while international net revenue increased 35 percent or 40 percent on a constant dollar basis. The Americas comparable sales were flat and international comparable sales increased 25 percent or 29 percent on a constant dollar basis.

Lululemon’s gross profit increased 11 percent to 1.3 billion dollars, while gross margin increased 20 basis points to 57.7 percent. Diluted earnings per share were 2.54 dollars compared to 2.28 dollars in the first quarter of 2023.

The company ended the first quarter with 711 company-operated stores.

Lululemon confirms 2024 revenue outlook

For the second quarter of 2024, the company expects net revenue to be in the range of 2.400 billion dollars to 2.420 billion dollars, representing growth of 9 percent to 10 percent.

Diluted earnings per share are expected to be in the range of 2.92 dollars to 2.97 dollars for the quarter.

For 2024, Lululemon continues to expect net revenue to be in the range of 10.700 billion dollars to 10.800 billion dollars, representing growth of 11 percent to 12 percent or 10 percent to 11 percent excluding the 53rd week of 2024.

It continues to expect operating margin for the year to be approximately 23.3 percent and diluted earnings per share are now expected to be in the range of 14.27 dollars to 14.47 dollars for the year.

During the quarter under review, the company repurchased 0.8 million shares of its common stock for a cost of 296.9 million dollars. On May 29, 2024, the board of directors approved a 1 billion dollars increase to the company's stock repurchase program.