A Lululemon business in Manhattan, New York City, on July 15, 2024.
Beata Zawrzel | Nurphoto | Getty pictures
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Lulhemmon Confederated the expectations of Wall Street to the fourth quarter in the fourth quarter and showed the disappointed analysts in 2025.
At an earnings call on Thursday, CEO Calvin McDonald said that the athlete company for sports clothing carried out a survey at the beginning of this month, in which consumers stated less than economic and inflation concerns, which led to a lower US traffic in Lululemon and industry colleagues. However, he said that buyers reacted well to innovations in the company.
“There are still considerable uncertainties that are due to the macro and geopolitical circumstances. After we say, we continue to concentrate on what we can control,” said McDonald.
The shares of the clothing company rose by 13%on Friday morning.
Lululemon was only the youngest retailer who said that it would expect slower sales for the rest of this year, since the concerns about a weakening economy and the tariff of President Donald Trump are growing. Nevertheless, the Canada-based company only expected a minimal success of profit from the US trade war with countries such as Canada, Mexico and China.
Compared to the expectations of Wall Street, the company did for the quarter on February 2, based on a survey of LSEG analysts:
- Win each share: $ 6.14 Opposite $ 5.85
- Revenue: 3.61 billion US dollars expected compared to 3.57 billion US dollars
Sales in the fourth quarter rose from $ 3.21 billion in the same period in 2023. The turnover of the 2024 year was $ 10.59 billion, which rose $ 9.62 billion in 2023.
The 2024 financial year contained Lululemon 53 weeks, one week longer than the 2023 financial year. Without the 53rd week, the turnover of the fourth quarter and the whole year both rose by 8% compared to the previous year.
Lululemon expects sales to be $ 2.34 billion to $ 2.34 billion in the first quarter, while Wall Street analysts expected $ 2.39 billion according to LSEG. The retailer assumes that he will achieve sales of $ 11.15 billion to $ 11.30 billion in 2025 in the amount of USD $ 11.15 billion compared to the analyst consensus estimate of $ 11.31 billion.
For the first quarter, the company expects profit to achieve per share in the range of $ 2.58, which, according to LSEG, lacks the expectation of $ 2.72. The total year of profit per share was $ 14.95 to $ 15.15 per share, while analysts expected $ 15.31.
CFO Meghan Frank said on Thursday that this gross margin for 2025 will probably decrease by 0.6 percentage points due to higher fixed costs, exchange rates and US tariffs for China and Mexico.
In the fourth quarter, Lululemon reported a net result of $ 748 million or $ 6.14 per share compared to a net result of $ 669 million or $ 5.29 per share in the fourth quarter of 2023.
Comparable sales, which defines Lululemon as sales of e-commerce and branches for at least 12 months, rose 3% in the quarter compared to the previous year. The comparison excludes the 53rd week of the 2024 financial year. Analysts expected the metric to increase by 5.1%.
Comparable sales in America were flat while they grew by 20% internationally. Lululemon was confronted with sales in the United States, although McDonald said that his US business stabilized in the second half of the year and partially traced the improvement of the new goods. He added that this year Lululemon would expand his business in Italy, Denmark, Belgium, Turkey and the Czech Republic.
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