lululemon athletica inc. Announces Third Quarter financial 2023 Results Board Of Directors Authorizes$1.0 Billion Stock Repurchase Program

moment blazoned fiscal results for the third quarter of financial 2023.

Calvin McDonald, Chief Executive Officer, stated” This was another strong quarter for lululemon as our innovative product immolations and community activations continued to forcefully reverberate with our guests encyclopedically. As we enter the vacation season, we’re pleased with our early performance and are well- deposited to deliver for our guests in the fourth quarter. I’m amped by the significant openings ahead, and would like to thank our inconceivable brigades around the world for their continued passion and commitment to our brand.”

The acclimatednon-GAAP fiscal measures below count certain force vittles, asset impairments, and restructuring costs honored in relation to lululemon Studio, and the affiliated income duty goods of these particulars.

For the third quarter of 2023, compared to the third quarter of 2022

Net profit increased 19 to$2.2 billion.
Net profit increased 12 in North America, and increased 49 internationally.
Total similar deals increased 13, or 14 on a constant bone
base.
similar store deals increased 9.
Direct to consumer net profit increased 18, or 19 on a constant bone
base.
Direct to consumer net profit represented 41 of total net profit compared to 41 for the third quarter of 2022.
Gross profit increased 21 to$1.3 billion. Acclimated gross profit increased 23 to$1.3 billion.
Gross periphery increased 110 base points to57.0. Acclimated gross periphery increased 220 base points to58.1.
Income from operations dropped 4 to$338.1 million. Acclimated income from operations increased 24 to$436.3 million.
Operating periphery dropped 370 base points to15.3. Acclimated operating periphery increased 80 base points to19.8.
Income duty expenditure increased 2 to$99.2 million. The effective duty rate for the third quarter of 2023 was28.5 compared to27.6 for the third quarter of 2022. The acclimated effective duty rate was28.1 for the third quarter of 2023.
The Company has entered into a cooperation with Peloton Interactive,Inc. for the provision of digital fitness content and will no longer produce its own content for the lululemon Studio Mirror. While the Company will continue to service and support being subscribers, it has desisted dealing the Mirror tackle. The Company honoredpost-tax asset impairment and other charges related to lululemon Studio totaling$72.1 million during the third quarter.
Adulterated earnings per share were$1.96 compared to$2.00 in the third quarter of 2022. Acclimated adulterated earnings per share were$2.53 in the third quarter of 2023.
The Company opened 14 net new company- operated stores during the third quarter, ending with 686 stores.
Meghan Frank, Chief Financial Officer, stated” Our third quarter performance, which exceeded our prospects on the top- and bottom- line, reflects the ongoing strength of our business model and our brigades’ capability to successfully execute at a high position amid an uncertain macro terrain. As we look to the end of our financial time and into 2024, we remain focused on driving long- term growth and creating value for all our stakeholders.”

Stock Repurchase Program

During the third quarter of 2023, the Company reacquired0.6 million shares of its own common stock at an average price of$380.88 per share for a cost of$210.8 million. As of October 29, 2023, the Company had$243.2 million of authorization remaining on its preliminarily authorized stock repurchase program.

On November 29, 2023, the board of directors approved an fresh stock repurchase program for over to$1.0 billion of the Company’s common shares.

Balance distance Highlights

The Company ended the third quarter of 2023 with$1.1 billion in cash and cash coequals and the capacity under its married revolving credit installation was$393.4 million.

supplies at the end of the third quarter of 2023 dropped 4 to$1.664 billion compared to$1.742 billion at the end of the third quarter of 2022.

2023 Outlook

For the fourth quarter of 2023, the Company expects net profit to be in the range of$3.135 billion to$3.170 billion, representing growth of 13 to 14. Adulterated earnings per share are anticipated to be in the range of$4.85 to$4.93 for the quarter. This assumes a duty rate of roughly 30.

For 2023, the Company expects net profit to be in the range of$9.549 billion to$9.584 billion, representing growth of 18. Adulterated earnings per share are anticipated to be in the range of$11.77 to$11.85 for the time, and banning certain force vittles, asset impairments, and restructuring costs honored in relation to lululemon Studio, and their affiliated duty goods, acclimated adulterated earnings per share are anticipated to be in the range of$12.34 to$12.42. This assumes a duty rate of roughly29.5.

The guidance doesn’t reflect implicit unborn repurchases of the Company’s shares.

The guidance and outlook forward- looking statements made in this press release are grounded on operation’s prospects as of the date of this press release and doesn’t incorporate unborn unknown impacts, including macroeconomic trends. The Company undertakes no duty to modernize or to continue to give information with respect to any forward- looking statements or threat factors, whether as a result of new information or unborn events or circumstances or else. factual results and the timing of events could differ materially from those anticipated in these forward- looking statements as a result of pitfalls and misgivings, 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 profit of$6.25 billion to$12.5 billion by 2026. The crucial pillars of the plan are product invention, guest experience, and request expansion and the growth strategy includes a plan to double men’s, double direct to consumer, and quadruple transnational net profit relative to 2021.

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