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Lululemon Shares Surge 7.61% in Pre-Market Trading on Strong Q1 Financial Results

In the wake of their latest quarterly earnings report, Lululemon Athletica Inc. (NASDAQ: LULU) saw a robust pre-market increase, with shares jumping to $331.73—a notable 7.61% rise. This surge is supported by a solid trading volume of 24.73K shares, reflecting strong investor confidence sparked by the company’s impressive financial performance for the first quarter of fiscal 2024, which concluded on April 28, 2024.

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Lululemon reported a 10% year-over-year increase in net revenue, reaching $2.2 billion, or an 11% rise on a constant dollar basis. The company’s international revenue saw a substantial increase of 35%, or 40% on a constant dollar basis, while domestic gains in the Americas were more modest at 3% or 4% on a constant dollar basis. Notably, international comparable sales surged by 25%, or 29% on a constant dollar basis, although America’s comparable sales remained flat.

The company’s gross profit rose by 11% to $1.3 billion, with the gross margin expanding slightly by 20 basis points to 57.7%. However, the operating margin dipped by 50 basis points to 19.6%. Despite these variances, diluted earnings per share increased to $2.54 from $2.28 in the prior year’s first quarter.

Looking forward, Lululemon sets an optimistic tone for 2024, projecting net revenue between $10.7 billion and $10.8 billion, which would represent an 11% to 12% growth year-over-year. The firm also forecasts diluted earnings per share to range from $14.27 to $14.47 for the year, assuming a tax rate of approximately 30%.

This financial outlook underscores Lululemon’s robust growth trajectory and strategic positioning in the competitive retail landscape, further highlighted by their ambitious $1 billion increase to their stock repurchase program, signaling a strong commitment to returning value to shareholders. A detailed discussion of these results and more will be addressed in today’s scheduled conference call, promising further insights into the company’s ongoing strategies and market positioning.

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