Lululemon Q4 Earnings Highlights: Revenue Beat, EPS Beat, Guidance Update And More

Athletic apparel company Lululemon Athletica Inc LULU reported fourth-quarter financial results after the market close Tuesday. Here are the key highlights.

What Happened: Lululemon reported fourth-quarter revenue of $2.77 billion, which was up 30% year-over-year. The revenue total beat a Street estimate of $2.70 billion, according to data from Benzinga Pro.

The company reported adjusted earnings per share of $4.40 in the fourth quarter, beating a Street estimate of $4.26.

Revenue in North America was up 29% year-over-year in the fourth quarter. International revenue was up 35% year-over-year in the fourth quarter.

Direct-to-consumer revenue was up 37% year-over-year in the fourth quarter and made up 52% of total revenue.

Same-store sales were up 15% year-over-year. The company opened 32 stores in the fourth quarter to bring the total to 655 stores at the end of the quarter.

Full-year revenue for the company was $8.1 billion, up 32% year-over-year. The company saw North American sales and international sales up 29% and 35% respectively on a year-over-year basis.

“In the fourth quarter and full year 2022, we delivered strong results across the business driven by our innovative products, powerful guest experiences, and strategic market expansion,” Lululemon CEO Calvin McDonald said.

Chief Financial Officer Meghan Frank highlighted the company’s brand.

“Our ability to exceed our annual revenue target in a dynamic operating environment is a testament to the enduring strength of the Lululemon brand,” Frank said.

In the fourth quarter, Lululemon purchased 0.2 million of its shares at an average price of $323.14, totaling around $68.7 million. The company ended the fiscal year with $1.2 billion in cash and cash equivalents.

Related Link: Trading Strategies For Lululemon After Q4 Earnings

What’s Next: Lululemon is guiding for first-quarter revenue to be in a range of $1.89 billion to $1.93 billion, compared to a Street estimate of $1.85 billion from Benzinga Pro.

Earnings per share are expected to be in the range of $1.93 to $2.00 in the first quarter.

For the full fiscal year, Lululemon sees revenue coming in a range of $9.30 billion to $9.41 billion, which would be year-over-year growth of 15%. Full-year earnings per share are guided to be in the range of $11.50 to $11.72.

Lululemon announced it will expand its Lululemon Studio premium tier with a new app launching in summer 2023.

“The company is evolving its Studio strategy and will focus on digital app-based services,” the company said.

Studio includes the company’s Mirror platform.

“The company believes the strategy will create efficiencies and enable more guests to experience the full range of digital fitness content, while also building a larger community of guests with a deeper connection to Lululemon.”

Lululemon remains on track for its Power of Three x2 growth plan, which will see revenue double from 2021 and $6.25 billion to $12.5 billion by 2026. The company’s key pillars for growth are men’s apparel, direct-to-consumer and international revenue.

LULU Price Action: Lululemon shares are up 8.92% to $348.88 in after-hours trading Tuesday.

Read Next: Analyst Ratings For Lululemon

Courtesy: Lululemon