Net sales for the quarter came in at $3.6 billion, up by 13 percent from the previous year, while gross profit rose by 15 percent to $2.2 billion, with gross margin up 100 basis points to 60.4 percent.
Sales for the fiscal year rose by 10 percent, to $10.6 billion, boosted by 56 net new company-operated store openings, bringing the total to 767.
Comparable fourth-quarter sales, which exclude net revenue from the 53rd week of 2024, rose by 3 percent.
Most of the sales gains came from overseas markets, with strong overall and comparable sales.
However, sales in U.S. markets lagged, with comparable sales flat for the fourth quarter and slightly down for the entire year.
Management expects net revenue of from $11.15 billion to $11.30 billion for fiscal year 2025.
That represents a deceleration of 5 percent to 7 percent or 7 percent to 8 percent from the 10 percent growth in fiscal year 2024.
Lululemon joins a growing chorus of retailers and merchandisers reporting weak U.S. sales or giving downbeat guidance for 2025.
Lululemon CEO Calvin McDonald credited the company’s solid sales performance to innovation and effective execution.
“Our fourth-quarter results exceeded our expectations as we continued to introduce more newness and innovation into our product assortment,” he said.
“Our performance demonstrates the ongoing strength and resilience of Lululemon and is a testament to the passion and dedication of our teams around the world. As we begin 2025, we remain focused on executing on our Power of Three ×2 growth plan and delivering an exciting pipeline of innovation and brand activations for our guests and communities.”
Launched in 2021, the Power of Three growth plan includes product innovation—introducing new product lines supporting yoga, running, and training; an office, travel, and commute category; and pursuing new opportunities, such as self-care. It calls for doubling the business to $12.5 billion by 2026 from a 2021 net revenue of $6.25 billion.
The Omni guest experiences supplement the Power of Three growth plan. These are intended to add to the buzz for the brand by offering an integrated guest experience across channels that fosters a healthy and mindful lifestyle for guests.
In addition, the company is focusing on market expansion, reaching out to fast-growing international markets such as China, the regions of Asia-Pacific; Europe, the Middle East, and Africa, and online markets in North America.
“Lululemon had a solid year in 2024, driven by successful international expansion, especially in China, and because of continued demand for its products,” Georgios Koimisis, an economics and finance associate professor at Manhattan University, told The Epoch Times via email.
“Even in a climate of global uncertainty, customers remained loyal to Lululemon, helping the brand to maintain steady growth.
“Improved profitability can also be attributed to Lululemon’s focus on product innovation and good customer service.”
Fei Chen, founder and CEO of Intellectia.AI, praised the company’s solid financial and innovative drive.
“Groundbreaking new-product releases (such as the Glow Up Tight) and a 10 percent projected expansion of square footage suggest that Lululemon is going all-in on growth, even in a time of bigger retail caution,” he told The Epoch Times.
Wall Street didn’t focus on Lululemon’s improved profitability and product innovation. Instead, it fixated on the conservative guidance for the new fiscal year, sending its shares sharply lower in early morning trade on March 28.
Looking ahead, Koimisis is concerned about several factors, including the company’s slow sales growth, which may indicate increased competition or even potential market saturation.
“Moreover, heavy reliance on international markets may pose risks if geopolitical conditions change,” he said.
“Rising costs might create pressure on profit margins in the future.”
