From CNBC:

Lululemon reported strong holiday earnings, beating expectations with net income of $669.5 million and $5.29 per share. Sales hit $3.21 billion, up 16% from the previous year. However, shares dropped 10% in extended trading due to lower guidance in North America, where sales growth slowed significantly.

The company’s growth in North America has stagnated, with sales rising only 9% compared to the year prior’s 29% growth. Internationally, sales grew 54%, with China leading at 78% growth. Despite a 12% increase in comparable sales, Lululemon fell slightly below analyst expectations of 12.3%.

For the next quarter, Lululemon forecasts net revenue growth between 9% and 10%, lower than the 12.5% analysts expected. Diluted earnings per share are projected between $2.35 and $2.40, below the expected $2.55. Full-year sales are expected to be between $10.7 billion and $10.8 billion, lower than the estimated $10.9 billion.

CEO Calvin McDonald reflected on slower U.S. consumer behavior and the need for strategic investments. Facing tougher competition in the athletic apparel market, Lululemon is focusing on expanding internationally, particularly in China. The company is also investing in new product categories like footwear and men’s apparel to drive growth.

Despite strong holiday sales, Lululemon faces challenges from rising competitors and shifting consumer behavior. The company is working on differentiating itself through innovative product offerings and international expansion. While the North American market remains challenging, Lululemon is optimistic about growth opportunities abroad.



Read more at CNBC:: Lululemon (LULU) earnings Q4 2023