Q4 2024 Lululemon Athletica Inc Earnings Call Transcript
Key Points
- Lululemon Athletica Inc (LULU) exceeded its revised guidance for Q4 2024, with total revenue increasing by 8% or 9% on a constant currency basis.
- The company achieved a 16% increase in earnings per share for Q4 2024.
- Lululemon Athletica Inc (LULU) repurchased $332 million of stock in Q4, demonstrating confidence in its long-term prospects.
- The company introduced several new product innovations, such as the Glow Up tight and Daydrift trouser, which have been well-received by customers.
- Lululemon Athletica Inc (LULU) plans to grow square footage by approximately 10% in 2025, including new store openings in existing and new international markets.
- The company is facing a dynamic macroeconomic environment, contributing to a more cautious consumer and slower traffic in the US.
- Lululemon Athletica Inc (LULU) expects a decrease in operating margin by approximately 100 basis points in 2025 due to FX headwinds and increased tariffs.
- The company anticipates a 60 basis point decrease in gross margins for the full year 2025, driven by deleverage on fixed costs and FX headwinds.
- Lululemon Athletica Inc (LULU) is experiencing a negative impact on Q1 2025 revenue growth due to foreign exchange, with a 1 percentage point drag.
- The company acknowledges uncertainty in the retail environment and is planning cautiously for both top- and bottom-line growth in 2025.
Thank you for standing by. This is the conference operator. Welcome to the lululemon athletica inc. fourth-quarter and full-year 2024 financial results conference call. (Operator Instructions) The conference is being recorded. (Operator Instructions)
I would now like to turn the conference over to Howard Tubin, Vice President, Investor Relations for lululemon athletica. Please go ahead.
Thank you, and good afternoon. Welcome to lululemon's fourth-quarter earnings call. Joining me to talk about our results are Calvin McDonald, CEO; and Meghan Frank, CFO.
Before we get started, I'd like to take this opportunity to remind you that our remarks today will include forward-looking statements reflecting management's current forecast of certain aspects of lululemon's future. These statements are based on current information, which we have assessed, but by which its nature is dynamic and subject to rapid and even abrupt changes.
Actual results may differ materially
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