Lululemon Q4 Earnings: Revenue, EPS Beat, Shares Slide On Soft Guidance

Lululemon Athletica Inc LULU reported financial results for the fourth quarter aftermarket close on Thursday. Here’s a rundown of the athletic apparel company’s report.

Q4 Earnings: Lululemon reported fourth-quarter revenue of $3.61 billion, beating the consensus estimate of $3.57 billion. The company reported fourth-quarter earnings of $6.14 per share, beating analyst estimates of $5.85 per share, according to Benzinga Pro.

Total revenue was up 13% on a year-over-year basis as Americas net revenue increased 7% and international revenue climbed 38%. Total comparable sales increased 3% year-over-year.

Lululemon's total store count was 767 at quarter's end after opening 18 net new company-operated stores during the quarter. Inventories were up 9% year-over-year to $1.4 billion.

The company ended the quarter with approximately $2 billion in cash and cash equivalents.

“Our fourth quarter results exceeded our expectations as we continued to introduce more newness and innovation into our product assortment,” said Calvin McDonald, CEO of Lululemon.

“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.”

Lululemon’s “Power of Three ×2 growth plan” calls for a doubling of the business from 2021 net revenue of $6.25 billion to $12.5 billion by 2026.

See Also: Stocks Slide As Auto Tariffs Boost Tesla, Rivian And Hit GM, Ford: What’s Driving Markets Thursday?

Outlook: Lululemon expects first-quarter revenue of $2.335 billion to $2.355 billion versus estimates of $2.39 billion. The company anticipates first-quarter earnings of $2.53 to $2.58 per share versus estimates of $2.74 per share.

Lululemon expects full-year 2025 revenue to be in the range of $11.15 billion to $11.3 billion versus estimates of $11.301 billion. The company sees full-year earnings in the range of $14.95 to $15.15 per share versus estimates of $15.30 per share.

The company’s soft guidance appears to be weighing on shares after hours. Lululemon executives will further discuss the quarter on a call with investors and analysts at 4:30 p.m. ET.

LULU Price Action: Lululemon shares were down about 10.5% year-to-date heading into the report. The stock was down 6.07% after-hours, trading at $320.80 at the time of publication Thursday, according to Benzinga Pro.

Read Next:

• Nike Stock Hits 52-Week Lows – Is The Sneaker King Losing Its Step?

Photo: Shutterstock.