Lululemon (NASDAQ:LULU) is a Vancouver-based company that is engaged in the design, distribution, and retail of athletic apparel, footwear, and accessories under the lululemon brand for women and men. Shares of Lululemon have increased 17% month-over-month as of close on Wednesday, December 13. The stock has soared 56% so far in the year-to-date period.
This company released its third quarter (Q3) fiscal 2023 earnings on December 7, 2023. Lululemon delivered revenue growth of 19% to $2.2 billion. It posted net revenue growth of 12% in North America and 49% around the world. Moreover, the company posted comparable sales growth of 13%, or 14% on a constant dollar basis. Comparable store sales rose 9% while direct-to-consumer net revenue increased 19% on a constant dollar basis.
Gross profit climbed 21% to $1.3 billion in Q3 fiscal 2023. Better yet, adjusted gross profit increased 23% to $1.3 billion. Adjusted income from operations rose 24% year-over-year to $436 million and its adjusted operating margin increased 80 basis points to 19.8%. Meanwhile, adjusted diluted earnings per share (EPS) were reported at $2.53 in Q3 2023. Beyond that, the company opened 14 net new company-operated stores in the third quarter. That brought the total stores to 686 stores.
Lululemon is geared up to deliver strong earnings growth going forward. Better yet, this company currently possesses an immaculate balance sheet. Clothing retailers have faced major challenges as consumers have been squeezed by higher interest rates. However, Lululemon remains a solid target in the busy holiday shopping season.
Related Stories
