Earnings Updates | Q1 2024

June 12, 2024by toleg.work

The corporate reporting period has is ending.

Last week, 9 companies from the S&P 500 index reported.

Today, we are going to look at the results of Lululemon Athletica. Its revenue is $2.2B. It grew by +2.2% compared to the corresponding value for the previous quarter and exceeded analysts’ expectations by +0.4%. Let’s analyze the company’s business in more detail.

Lululemon Athletica is a Canadian-American manufacturer of sportswear and accessories. The company operates 700 stores in 20 countries. The main specialization is clothing and footwear for yoga and fitness, but the company is actively developing the professional sportswear business.

The company’s revenues increased by +10.1% year-on-year. This revenue growth was driven by active expansion into other countries. In China alone, the company opened 28 new stores in 2023 and planned to open 25 new stores in 2024. The company also has its own R&D department, which includes 50 scientists and technologists who develop new fabrics for clothing. Lululemon Athletica’s business model does not involve wholesale sales, but only retail or online, which is why the company keeps a high check for its products – an average of $100 per item.

42% of the revenue structure is made up of manufacturing costs, and 58% is gross revenue. Over the past quarter, the company earned a profit of $321M and its market capitalization is $39B.

After the publication of the report, Lululemon Athletica shares rose by +4.8% to reach $317 per share. Market participants are satisfied with the company’s financial results and respond positively to the company’s development prospects.

*surprise – % ratio between actual and expected revenue
**growth – % ratio of the amount of revenue for the last 4 quarters compared to this value calculated for the previous quarter

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