Lululemon Athletica inc.

Quarterly Performance: Lululemon's Q4 revenue increased by 8% (9% on a constant currency basis) to $3.6 billion, exceeding guidance. Operating margin rose 40 basis points to 28.9%, and earnings per share grew 16% YOY to $6.14. Full-year 2024 revenue reached $10.6 billion, also an 8% increase, showcasing consistent growth.

U.S. Revenue Forecast: For fiscal year 2025, Lululemon projects modest U.S. revenue growth in the low-single-digit to mid-single-digit range, reflecting a cautious consumer environment marked by macroeconomic uncertainties. Q1 growth is expected to be similar to Q4 due to traffic challenges across the industry.

Product Innovation Pipeline: Lululemon is incorporating strong product innovation with launches such as the Glow Up and Daydrift lines, which have received positive feedback. The company aims to leverage these new products to drive both new guest acquisition and retain existing customers, thereby providing a growth opportunity.