Canada’s Lululemon Athletica’s revenue jumps 19% in FY23

Lululemon Athletica, a Canadian athletic apparel company, has reported a net revenue increase of 19 per cent in fiscal 2023 (FY23), reaching $9.6 billion, with a noteworthy 20 per cent rise on a constant currency basis. This growth was driven by a substantial 54 per cent increase in international net revenue, or 58 per cent on a constant dollar basis, alongside a solid 12 per cent rise in the Americas.

Comparable sales across the board rose by 13 per cent, or 14 per cent when adjusted for constant dollar terms, indicating strong consumer loyalty and new customer acquisition. Notably, international comparable sales surged by 35 per cent, or 39 per cent on a constant dollar basis, outpacing the Americas, which saw an 8 per cent increase, or 9 per cent on a constant dollar basis, the company said in a media release .

Lululemon Athletica reported a 19 per cent revenue increase in FY23, hitting $9.6 billion, driven by a 54 per cent rise in international sales. Gross margin rose to 58.3 per cent, with diluted EPS doubling to $12.20. In Q4 FY23, the company saw net revenue increase by 16 per cent to $3.2 billion, and operating income surged 191 per cent to $913.9 million.

Gross margin expanded by 290 basis points to 58.3 per cent, with an adjusted increase of 240 basis points to 58.6 per cent. Operating margin grew by 580 basis points, reaching 22.2 per cent, with an adjusted operating margin climbing 110 basis points to 23.2 per cent. Diluted earnings per share more than doubled from $6.68 in 2022 to $12.20 in 2023, with adjusted diluted earnings per share rising from $10.07 to $12.77.

During the year, Lululemon broadened its physical presence by opening 56 new company-operated stores, bringing the total to 711 stores worldwide.

The fourth quarter of FY23 (Q4 FY23) further underscored the company’s strong performance with a 16 per cent increase in net revenue to $3.2 billion. The Americas and international markets continued their growth trajectories, with the latter witnessing a remarkable 54 per cent rise in net revenue, or 56 per cent on a constant dollar basis.

Comparable sales in the quarter increased by 12 per cent, with international comparable sales impressively up by 43 per cent, or 44 per cent on a constant dollar basis. Gross profit for the quarter jumped by 25 per cent to $1.9 billion, with gross margin escalating to 59.4 per cent.

Income from operations in Q4 FY23 increased by 191 per cent to $913.9 million and operating margin soared to 28.5 per cent from 11.3 per cent in the same quarter the previous year. Diluted earnings per share stood at $5.29, a significant increase from $0.94 in Q4 FY22.

“We are pleased with the strong finish to our fiscal 2023 and continue to be ahead of our Power of Three ×2 strategy. During the fourth quarter, we saw continued momentum across our channels, geographies, and merchandise categories, driven by our teams around the world. As we step into 2024, we are focused on the significant opportunities ahead for Lululemon as we navigate the dynamic retail environment and deliver for guests through innovative new products and brand activations,” said Calvin McDonald, chief executive officer.

Fibre2Fashion News Desk (DP)