Sector: Consumer Discretionary|Industry: Apparel Retail|Market Cap: $45.31B|Employees: 38K
Lululemon Athletica Inc. is a designer, distributor, and retailer of athletic apparel, footwear, and accessories. The company operates an omni-channel retail model with a focus on technical fabrics and product innovation. Lululemon has a global presence with a strong market position in the Americas and growing presence in China and other international markets.
Lululemon reported net revenue of $10.6 billion, a 10% increase compared to $9.6 billion in the previous year. This growth was primarily driven by a 41% increase in China Mainland revenue and a 27% increase in Rest of World revenue, offsetting slower growth in the Americas.
Comparable sales, excluding the 53rd week of 2024, increased by 4%, a significant deceleration from previous years. This slowdown is primarily attributed to a 1% decrease in comparable sales in the Americas region, indicating challenges in the core market.
Gross margin increased by 90 basis points to 59.2%, driven by a 120 basis point increase in product margin due to lower product costs and inventory provision expense. This improvement indicates effective cost management and pricing strategies despite inflationary pressures.