Executive Summary
Lululemon delivered a standout QQ4 2024 performance, underscored by a robust top-line expansion and compelling profitability metrics. Revenue rose to $3.611B, up 63.50% year over year and 50.69% quarter over quarter, driven by a strong direct-to-consumer (DTC) framework, sustained international expansion, and product-category momentum. Gross profit reached $2.182B with a gross margin of 60.4%, contributing to an operating margin near 28.9% and a net margin of 20.7%. Earnings per share were $6.15 (diluted $6.14), reflecting disciplined cost management and favorable mix. Free cash flow was strong at $1.167B, supporting a net cash position of approximately $408.5M and an active capital-allocation program that included ~$335.4M in share repurchases. Management signaled ongoing emphasis on DTC strength and international growth, while maintaining a prudent inventory stance and capital discipline.
Key Performance Indicators
QoQ: 112.40% | YoY:125.62%
QoQ: 112.69% | YoY:132.84%
QoQ: 114.29% | YoY:141.18%
Key Insights
Revenue: $3.611B in Q4 2024; YoY growth 63.50%, QoQ growth 50.69%. Gross Profit: $2.182B; Gross Margin 60.42% (Gross Profit Margin 0.604). Operating Income: $1.042B; Operating Margin 28.86%. Net Income: $748.403M; Net Margin 20.72%. EBITDA: $1.176B; EBITDA Margin 32.56%. EPS (Diluted): $6.14-$6.15; Weighted Avg Shares Diluted: 121.9M. Cash Flow: Operating cash flow $1.401B; Free Cash Flow $1.167B. Balance Sheet: Cash & equivalents $1.984B; Total Assets $7.603B; Total Liabilities $3.279B; Net...
Financial Highlights
Revenue: $3.611B in Q4 2024; YoY growth 63.50%, QoQ growth 50.69%. Gross Profit: $2.182B; Gross Margin 60.42% (Gross Profit Margin 0.604). Operating Income: $1.042B; Operating Margin 28.86%. Net Income: $748.403M; Net Margin 20.72%. EBITDA: $1.176B; EBITDA Margin 32.56%. EPS (Diluted): $6.14-$6.15; Weighted Avg Shares Diluted: 121.9M. Cash Flow: Operating cash flow $1.401B; Free Cash Flow $1.167B. Balance Sheet: Cash & equivalents $1.984B; Total Assets $7.603B; Total Liabilities $3.279B; Net Cash Position: -$0.409B. Return metrics: ROE 17.3%, ROA 9.84%, ROCE 18.1%. Working capital and efficiency: DSO 7.54 days, DIO 90.79 days, Payables Outstanding 17.09 days; CCC ~81 days. Inventory Turnover ~0.991x; Fixed Asset Turnover ~1.13x.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.61B |
63.50% |
50.69% |
| Gross Profit |
2.18B |
71.12% |
55.68% |
| Operating Income |
1.04B |
125.62% |
112.40% |
| Net Income |
748.40M |
132.84% |
112.69% |
| EPS |
6.15 |
141.18% |
114.29% |
Key Financial Ratios
operatingProfitMargin
28.9%
operatingCashFlowPerShare
$11.52
freeCashFlowPerShare
$9.59
Management Commentary
Note: No earnings-call transcript data has been provided in the materials. Nevertheless, management commentary embedded in the QQ4 2024 results emphasizes the following themes: (1) Direct-to-Consumer leadership and international expansion as primary growth engines; (2) Margin resilience and expansion supported by favorable product mix and disciplined cost management; (3) Strong cash generation and conservative balance sheet enabling capital allocation through share repurchases; (4) Ongoing investments in omnichannel capabilities and product innovation to sustain premium positioning. Investors should monitor commentary on DTC mix, inventory discipline, and any guidance updates in subsequent communications.
Forward Guidance
No explicit numeric guidance was provided for QQ5/FY2025 in the QQ4 2024 release. Management underscored continued emphasis on DTC growth, international expansion, and product innovation as the core growth levers. In our view, the achievability of a mid-to-high single-digit revenue trajectory will depend on: (a) sustained momentum in DTC and online channels, (b) successful expansion of international footprint (UK/EU and Asia-Pacific), and (c) gross margin maintenance amid potential input-cost volatility. Key factors investors should monitor include: cadence of international store openings, gross margin trajectory, inventory levels relative to demand, and the pace of buybacks versus capex and potential dividends.