Lululemon (NASDAQ: $LULU) is a Canadian multinational athleisure retailer best known for its yoga pants, athletic wear, accessories, and lifestyle apparel. It released its Q4 fiscal 2024 results on March 27, 2025, after markets closed. Here is a deep dive into those results.
Lululemon Q4 Results
For the fourth quarter of fiscal 2024, Lululemon reported a 13% YoY increase in revenue to $3.61 billion, beating estimates of $3.57 billion. It reported an adjusted EPS of $6.14, beating estimates of $5.85.
It reported a 15% YoY increase in gross profit to $2.2 billion, while the gross margin grew 100 basis points to 60.4%. Income from operations was up 14% YoY to $1 billion, while the operating margin was up 40 basis points to 28.9%.
During the fourth quarter, the company bought back $332.2 million worth of shares, and opened 18 net new stores, for a total of 767 stores.
Full-Year Highlights
For the full year, it reported a revenue of $10.59 billion, a 10% YoY increase from the $9.62 billion reported last year.
The gross profit rose 12% YoY to $6.3 billion, while the adjusted gross profit was up 11% YoY. Lululemon reported a full-year gross margin of 59.2%, a 90 basis point increase, while the adjusted gross margin rose 60 basis points.
Full-year income from operations rose 17% YoY to $2.5 billion, while the adjusted income from operations rose 12% YoY.
The full-year operating margin rose 150 basis points to 23.7%, while the adjusted operating margin rose 50 basis points. The company reported a full-year diluted EPS was $14.64 compared to $12.20 the previous year.
Lululemon bought back $1.6 billion worth of shares throughout the year. It added 56 net new stores, which included 14 net new stores from the acquisition of Mexico operations, ending the year with 767 stores.
Balance Sheet
The company ended fiscal 2024 with $2 billion in cash reserves and $393.9 million in available capacity under its revolving credit facility. Inventories rose 9% in 2024 to $1.4 billion.
Guidance
In Q1 fiscal 2025, Lululemon expects revenue of $2.335 billion to $2.355 billion, a 6% to 7% YoY increase, missing analysts’ forecasts of $2.39 billion. It expects a Q1 diluted EPS of $2.53 to $2.58, missing analysts’ estimate of $2.72.
For the full year, Lululemon expects revenue of $11.15 billion to $11.30 billion, a 5% to 7% YoY crease, but below forecasts of $11.31 billion. Full-year diluted EPS is forecast at $14.95 to $15.15, below analysts’ estimate of $15.31.
Market Performance
Following the guidance miss for both Q1 and the full year, Lululemon shares sank 14.50% during the morning trading session to $291.99 per share as of 11:46 AM EDT. LULU is now up 4.32% in the past six months, but down 23.61% year to date. The stock has dipped 25.23% in the past 12 months.
Analysts remain cautiously optimistic, giving LULU a moderate buy rating. They forecast an average price target of $420.68, which is 43.15% upside. The analysts give a wide range of forecasts, with a high of $500 and a low of $220.
Should You Buy LULU In 2025?
While Lululemon is facing increased competition in the North American market, coupled with macroeconomic headwinds, its brand remains a powerhouse in the athleisure industry. The company has also experienced growth internationally, although it has work to do to reignite comparable sales growth in the US. 2025 might not be great for Lululemon, but the company’s commitment to innovation and new products could potentially turn things around next year.
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