Revenue increased 24% to $2.0
billion
Comparable sales increased 14%, or increased
17% on a constant dollar basis
Diluted EPS of $2.28
lululemon athletica inc. (NASDAQ:LULU) today announced financial
results for the first quarter of fiscal 2023.
Calvin McDonald, Chief Executive Officer, stated: "We are
pleased with our solid start to the year, delivering strong
financial performance and continued momentum. Our results reflect
the strength of our guest relationships, our innovative products
and how our brand resonates across the globe. This year we
celebrate our 25th anniversary, and our community-based model
remains one of our biggest competitive advantages. We are excited
for the future and remain on track to deliver on our Power of Three
×2 growth plan."
For the first quarter of 2023, compared to the first quarter of
2022:
- Net revenue increased 24% to $2.0 billion, or increased 27% on
a constant dollar basis.
- Net revenue increased 17% in North America, and increased 60%
internationally.
- Total comparable sales increased 14%, or 17% on a constant
dollar basis.
- Comparable store sales increased 13%, or 16% on a constant
dollar basis.
- Direct to consumer net revenue increased 16%, or 18% on a
constant dollar basis.
- Direct to consumer net revenue represented 42% of total net
revenue compared to 45% for the first quarter of 2022.
- Gross profit increased 32% to $1.2 billion and gross margin
increased 360 basis points to 57.5%.
- Income from operations increased 54% to $401.4 million.
- Operating margin increased 400 basis points to 20.1%.
- Income tax expense increased 69% to $119.0 million. The
effective tax rate for the first quarter of 2023 was 29.1% compared
to 27.0% for the first quarter of 2022.
- Diluted earnings per share were $2.28 compared to $1.48 in the
first quarter of 2022.
- The Company repurchased 0.3 million shares of its own common
stock at an average price of $336.37 per share for a cost of $98.1
million.
- The Company opened seven net new company-operated stores during
the first quarter, ending with 662 stores.
Meghan Frank, Chief Financial Officer, stated: "Our Q1 results
were strong as guests responded well to our product offering in all
our markets across the globe. A meaningful acceleration in our
China sales trend, coupled with lower air freight, contributed to
our better than planned financial performance. We are pleased with
our momentum heading into the second quarter and for the full year
as reflected in our revised outlook for FY23."
Balance sheet highlights
The Company ended the first quarter of 2023 with $950.6 million
in cash and cash equivalents and the capacity under its committed
revolving credit facility was $393.5 million.
Inventories at the end of the first quarter of 2023 increased
24% to $1.6 billion compared to $1.3 billion at the end of the
first quarter of 2022.
2023 Outlook
For the second quarter of 2023, the Company expects net revenue
to be in the range of $2.140 billion to $2.170 billion,
representing growth of approximately 15%. Diluted earnings per
share are expected to be in the range of $2.47 to $2.52 for the
quarter. This guidance assumes a 30% tax rate.
For 2023, the Company expects net revenue to be in the range of
$9.440 billion to $9.510 billion, representing growth of
approximately 17%. Diluted earnings per share are expected to be in
the range of $11.74 to $11.94 for the year. This guidance assumes a
30% tax rate.
The guidance does not reflect potential future repurchases of
the Company's shares.
The guidance and outlook forward-looking statements made in this
press release are based on management's expectations as of the date
of this press release and does not incorporate future unknown
impacts, including macroeconomic trends. The Company undertakes no
duty to update or to continue to provide information with respect
to any forward-looking statements or risk factors, whether as a
result of new information or future events or circumstances or
otherwise. Actual results and the timing of events could differ
materially from those anticipated in these forward-looking
statements as a result of risks and uncertainties, including those
stated below.
Power of Three ×2
The Company'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. The key pillars of the plan are product
innovation, guest experience, and market expansion and the growth
strategy includes a plan to double men's, double direct to
consumer, and quadruple international net revenue relative to
2021.
Conference Call Information
A conference call to discuss first quarter results is scheduled
for today, June 1, 2023, at 4:30 p.m. Eastern time. Those
interested in participating in the call are invited to dial
1-800-319-4610 or 1-604-638-5340, if calling internationally,
approximately 10 minutes prior to the start of the call. A live
webcast of the conference call will be available online at:
https://corporate.lululemon.com/investors/news-and-events/events-and-presentations.
A replay will be made available online approximately two hours
following the live call for a period of 30 days.
About lululemon athletica inc.
lululemon athletica inc. (NASDAQ:LULU) is a technical athletic
apparel, footwear, and accessories company for yoga, running,
training, and most other activities, creating transformational
products and experiences that build meaningful connections,
unlocking greater possibility and wellbeing for all. Setting the
bar in innovation of fabrics and functional designs, lululemon
works with yogis and athletes in local communities around the world
for continuous research and product feedback. For more information,
visit lululemon.com.
Non-GAAP Financial Measures
Constant dollar changes are non-GAAP financial measures. A
constant dollar basis assumes the average foreign currency exchange
rates for the period remained constant with the average foreign
currency exchange rates for the same period of the prior year. The
Company provides constant dollar changes in its results to help
investors understand the underlying growth rate of net revenue
excluding the impact of changes in foreign currency exchange rates.
Management uses these constant currency metrics internally when
reviewing and assessing financial performance.
The presentation of this financial information is not intended
to be considered in isolation or as a substitute for, or with
greater prominence to, the financial information prepared and
presented in accordance with GAAP. For more information on these
non-GAAP financial measures, please see the section captioned
"Reconciliation of Non-GAAP Financial Measures" included in the
accompanying financial tables, which includes more detail on the
GAAP financial measure that is most directly comparable to each
non-GAAP financial measure, and the related reconciliations between
these financial measures.
Forward-Looking Statements:
This press release includes estimates, projections, statements
relating to the Company's business plans, objectives, and expected
operating results that are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995,
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. In many cases, you can identify
forward-looking statements by terms such as "may," "will,"
"should," "expects," "plans," "anticipates," "outlook," "believes,"
"intends," "estimates," "predicts," "potential" or the negative of
these terms or other comparable terminology. These forward-looking
statements also include the Company's guidance and outlook
statements. These statements are based on management's current
expectations but they involve a number of risks and uncertainties.
Actual results and the timing of events could differ materially
from those anticipated in the forward-looking statements as a
result of risks and uncertainties, which include, without
limitation: the Company's ability to maintain the value and
reputation of its brand; changes in consumer shopping preferences
and shifts in distribution channels; the acceptability of its
products to guests; its highly competitive market and increasing
competition; increasing costs and decreasing selling prices; its
ability to anticipate consumer preferences and successfully develop
and introduce new, innovative and updated products; its ability to
accurately forecast guest demand for its products; its ability to
expand in light of its limited operating experience and limited
brand recognition in new international markets and new product
categories; its ability to manage its growth and the increased
complexity of its business effectively; its ability to successfully
open new store locations in a timely manner; seasonality;
disruptions of its supply chain; its reliance on a relatively small
number of vendors to supply and manufacture a significant portion
of its products; suppliers or manufacturers not complying with its
Vendor Code of Ethics or applicable laws; its ability to deliver
its products to the market and to meet guest expectations if it has
problems with its distribution system; increasing labor costs and
other factors associated with the production of its products in
South Asia and South East Asia; its ability to safeguard against
security breaches with respect to its technology systems; its
compliance with privacy and data protection laws; any material
disruption of its information systems; its ability to have
technology-based systems function effectively and grow its
e-commerce business globally; climate change, and related
legislative and regulatory responses; increased scrutiny regarding
its environmental, social, and governance, or sustainability
responsibilities; an economic recession, depression, or downturn or
economic uncertainty in its key markets; global or regional health
events such as the current COVID-19 pandemic and related
government, private sector, and individual consumer responsive
actions; global economic and political conditions; its ability to
source and sell its merchandise profitably or at all if new trade
restrictions are imposed or existing trade restrictions become more
burdensome; changes in tax laws or unanticipated tax liabilities;
its ability to comply with trade and other regulations;
fluctuations in foreign currency exchange rates; imitation by its
competitors; its ability to protect its intellectual property
rights; conflicting trademarks and patents and the prevention of
sale of certain products; its exposure to various types of
litigation; and other risks and uncertainties set out in filings
made from time to time with the United States Securities and
Exchange Commission and available at www.sec.gov, including,
without limitation, its most recent reports on Form 10-K and Form
10-Q. You are urged to consider these factors carefully in
evaluating the forward-looking statements contained herein and are
cautioned not to place undue reliance on such forward-looking
statements, which are qualified in their entirety by these
cautionary statements. The forward-looking statements made herein
speak only as of the date of this press release and the Company
undertakes no obligation to publicly update such forward-looking
statements to reflect subsequent events or circumstances, except as
may be required by law.
lululemon athletica inc.
The fiscal year ending January 28, 2024 is referred to as
"2023", the fiscal year ended January 29, 2023 is referred to as
"2022".
Condensed Consolidated Statements of Operations Unaudited;
Expressed in thousands, except per share amounts
First Quarter
2023
2022
Net revenue
$
2,000,792
$
1,613,463
Costs of goods sold
849,987
743,070
Gross profit
1,150,805
870,393
As a percent of net revenue
57.5
%
53.9
%
Selling, general and administrative
expenses
747,513
607,851
As a percent of net revenue
37.4
%
37.7
%
Amortization of intangible assets
1,878
2,195
Income from operations
401,414
260,347
As a percent of net revenue
20.1
%
16.1
%
Other income (expense), net
8,025
(22
)
Income before income tax expense
409,439
260,325
Income tax expense
119,034
70,327
Net income
$
290,405
$
189,998
Basic earnings per share
$
2.28
$
1.48
Diluted earnings per share
$
2.28
$
1.48
Basic weighted-average shares
outstanding
127,246
128,077
Diluted weighted-average shares
outstanding
127,621
128,541
lululemon athletica inc.
Condensed Consolidated Balance Sheets Unaudited; Expressed in
thousands
April 30,
2023
January 29,
2023
May 1,
2022
ASSETS
Current assets
Cash and cash equivalents
$
950,607
$
1,154,867
$
649,016
Inventories
1,580,313
1,447,367
1,275,040
Prepaid and receivable income taxes
182,393
185,641
116,281
Other current assets
339,989
371,578
262,903
Total current assets
3,053,302
3,159,453
2,303,240
Property and equipment, net
1,312,793
1,269,614
974,784
Right-of-use lease assets
993,471
969,419
819,998
Goodwill and intangible assets, net
44,123
46,105
455,940
Deferred income taxes and other
non-current assets
167,855
162,447
143,250
Total assets
$
5,571,544
$
5,607,038
$
4,697,212
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable
$
287,464
$
172,732
$
308,086
Accrued liabilities and other
342,751
399,223
362,938
Accrued compensation and related
expenses
125,053
248,167
119,482
Current lease liabilities
210,506
207,972
178,273
Current income taxes payable
30,213
174,221
22,279
Unredeemed gift card liability
223,970
251,478
183,910
Other current liabilities
36,814
38,405
31,923
Total current liabilities
1,256,771
1,492,198
1,206,891
Non-current lease liabilities
888,582
862,362
726,270
Non-current income taxes payable
28,555
28,555
28,555
Deferred income tax liability
54,533
55,084
53,061
Other non-current liabilities
23,027
20,040
14,385
Stockholders' equity
3,320,076
3,148,799
2,668,050
Total liabilities and stockholders'
equity
$
5,571,544
$
5,607,038
$
4,697,212
lululemon athletica inc.
Condensed Consolidated Statements of Cash Flows Unaudited;
Expressed in thousands
First Quarter
2023
2022
Cash flows from operating activities
Net income
$
290,405
$
189,998
Adjustments to reconcile net income to net
cash provided by (used in) operating activities
(244,902
)
(433,254
)
Net cash provided by (used in) operating
activities
45,503
(243,256
)
Net cash used in investing activities
(138,219
)
(101,328
)
Net cash used in financing activities
(115,399
)
(259,560
)
Effect of foreign currency exchange rate
changes on cash
3,855
(6,711
)
Increase (decrease) in cash and cash
equivalents
(204,260
)
(610,855
)
Cash and cash equivalents, beginning of
period
1,154,867
1,259,871
Cash and cash equivalents, end of
period
$
950,607
$
649,016
lululemon athletica inc.
Reconciliation of Non-GAAP Financial Measures Unaudited
Constant dollar changes in net revenue, total comparable sales,
comparable store sales, and direct to consumer net revenue
The below changes show the change for the first quarter of 2023
compared to the first quarter of 2022.
Net Revenue
Total
Comparable
Sales(1),(2)
Comparable
Store Sales(2)
Direct to
Consumer Net
Revenue
Change
24
%
14
%
13
%
16
%
Adjustments due to foreign currency
exchange rate changes
3
3
3
2
Change in constant dollars
27
%
17
%
16
%
18
%
__________
(1)
Total comparable sales includes
comparable store sales and direct to consumer net revenue.
(2)
Comparable store sales reflects
net revenue from company-operated stores that have been open for at
least 12 full fiscal months, or open for at least 12 full fiscal
months after being significantly expanded. Comparable store sales
exclude sales from stores which have been temporarily relocated for
renovations or have been temporarily closed.
lululemon athletica inc.
Company-operated Store Count and Square Footage(1) Square
Footage Expressed in Thousands
Number of
Stores Open
at the
Beginning of
the Quarter
Number of
Stores
Opened
During the
Quarter
Number of
Stores Closed
During the
Quarter
Number of
Stores Open
at the End of
the Quarter
2nd Quarter 2022
579
22
1
600
3rd Quarter 2022
600
25
2
623
4th Quarter 2022
623
34
2
655
1st Quarter 2023
655
10
3
662
Total Gross
Square Feet at
the Beginning
of the Quarter
Gross Square
Feet Added
During the
Quarter(2)
Gross Square
Feet Lost
During the
Quarter(2)
Total Gross
Square Feet at
the End of
the Quarter
2nd Quarter 2022
2,155
105
2
2,258
3rd Quarter 2022
2,258
139
7
2,390
4th Quarter 2022
2,390
189
4
2,575
1st Quarter 2023
2,575
64
7
2,632
__________
(1)
Company-operated store count and
square footage summary excludes retail locations operated by third
parties under license and supply arrangements.
(2)
Gross square feet added/lost
during the quarter includes net square foot additions for
company-operated stores which have been renovated or relocated in
the quarter.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230601005976/en/
Investor Contact: lululemon athletica inc. Howard Tubin
1-604-732-6124 or ICR, Inc. Joseph Teklits/Caitlin Churchill
1-203-682-8200
Media Contact: lululemon athletica inc. Erin Hankinson
1-604-732-6124 or lululemon athletica inc. Madi Wallace
1-604-732-6124
Lululemon Athletica (NASDAQ:LULU)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Lululemon Athletica (NASDAQ:LULU)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024