Lululemon Q4 Earnings: Revenue Beat, EPS Beat, Shares Slide On Weak Q1 Guidance

Lululemon Athletica Inc LULU reported fiscal fourth-quarter earnings Thursday after the market close. Here’s a look at the key metrics from the quarter.

Q4 Earnings: Lululemon’s fourth-quarter revenue increased 16% year-over-year to $3.205 billion, which beat the consensus estimate of $3.194 billion, according to Benzinga Pro. The athleisure company reported quarterly earnings of $5.29 per share, which beat analyst estimates of $4.97 per share.

Americas net revenues increased 9% year-over-year, international revenues were up 54% year-over-year and total comparable sales were up 12% year-over-year.

Lululemon opened 25 new company-operated stores during the third quarter, bringing its total store count up to 711. Inventories were down 9% at the end of 2023, compared to 2022.

The company ended the quarter with $2.2 billion in cash and equivalents, up from $1.2 billion at the end of 2022.

“During the fourth quarter, we saw continued momentum across our channels, geographies, and merchandise categories, driven by our teams around the world,” said Calvin McDonald, CEO of Lululemon.

“As we step into 2024, we are focused on the significant opportunities ahead for lululemon as we navigate the dynamic retail environment and deliver for guests through innovative new products and brand activations.”

Outlook: Lululemon sees first-quarter revenue in the range of $2.175 billion to $2.2 billion versus estimates of $2.25 billion. The company anticipates first-quarter earnings of $2.35 to $2.40 per share versus estimates of $2.55 per share.

Full-year 2024 revenue is expected to be between $10.7 billion and $10.8 billion versus estimates of $9.61 billion. The company expects full-year earnings to be between $14 and $14.20 per share versus estimates of $12.46 per share.

Lululemon’s weak first-quarter guidance appears to be driving shares lower after the bell. Management will hold a conference call to discuss these results at 4:30 p.m. ET.

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LULU Price Action: Lululemon shares were down 8.34% after hours at $436 at the time of publication, according to Benzinga Pro.

Photo: Phillip Pessar from Flickr.