A Lululemon store in Manhattan, New York City, on July 15, 2024.
Beata Zawrzel | Nurphoto | Getty images
Lululemon He beat Wall Street expectations for the profits and income of the fourth fiscal quarter, but issued a 2025 guide that disappointed analysts.
In a profit call on Thursday, the CEO Calvin McDonald said that the athletic clothing company conducted a survey earlier this month that discovered that consumers are spending less due to economic concerns and infections, resulting in lower traffic in the United States in Lululemon and their industry companions. However, he said, buyers responded well to innovation in the company.
“There are still considerable uncertainty promoted by macro and geopolitical circumstances. That said, we remain focused on what we can control,” McDonald said.
The actions of the clothing company submerged 15% on Friday morning.
Lululemon was only the last retailer to say that he expects slower sales for the rest of this year as concerns about a weakened economy and the rates of President Donald Trump grow. Even so, the company based in Canada said that it only expected a minimum impact for the profits of the United States commercial war with countries such as Canada, Mexico and China.
This is how the company did compared to what Wall Street expected for the quarter that ended on February 2, based on an LSEG analysts survey:
- Profit per action: $ 6.14 vs. $ 5.85 expected
- Revenue: $ 3.61 billion compared to $ 3.57 billion expected
The revenues of the fourth quarter increased from $ 3.21 billion during the same period in 2023. The income of the entire 2024 reached $ 10.59 billion, compared to $ 9.62 billion in 2023.
The 2024 prosecutor of Lululemon contained 53 weeks, one week more than his fiscal year 2023. Excluding the 53rd week, the fourth fourth and the full year, the income of the whole year increased 8% year after year by 2024.
Lululemon expects the revenues of the first quarter to total $ 2.34 billion to $ 2.36 billion, while Wall Street analysts waited $ 2.39 billion, according to LSE. The retailer anticipates that he will publish income from the Full Year Fiscal Year 2025 from $ 11.15 billion to $ 11.30 billion, compared to the estimate of consensus of analysts of $ 11.31 billion.
For the first quarter, the company expects to publish profits per share in the range of $ 2.53 to $ 2.58, since it lacks the expectation of Wall Street of $ 2.72, according to LSE. The earning guide per share per year reached $ 14.95 to $ 15.15 per share, while analysts anticipated $ 15.31.
Financial director Meghan Frank said on Thursday the profits of the profits expected that the gross margin for 2025 falls 0.6 percentage points due to the highest fixed costs, the exchange rates and the US tariffs. UU. In China and Mexico.
Lululemon reported a net income for the fourth quarter of $ 748 million, or $ 6.14 per share, compared to a net income of $ 669 million, or $ 5.29 per share, during the fourth quarter of 2023.
Comparable sales, which Lululemon defines as income from electronic commerce and stores open at least 12 months, increased 3% year after year for quarter. The comparison excludes the 53rd week of fiscal year 2024. Analysts expected the metric to increase 5.1%.
Comparable sales in the Americas were flat, while they grew 20% internationally. Lululemon has faced a slowdown in sales in the United States, although McDonald said his United States business stabilized in the second half of the year and partially attributed improvement to the new merchandise. He added that Lululemon will expand his stores to Italy, Denmark, Belgium, Türkiye and the Czech Republic this year.
