Lululemon Athletica Inc. reported strong financial performance for the second quarter and the first two quarters of fiscal 2024, ending July 28, 2024. The company achieved net revenue of $2,371,078,000 for Q2 2024, marking a 7% increase from $2,209,165,000 in Q2 2023. On a constant dollar basis, this revenue growth was 8%. For the first two quarters, net revenue reached $4,579,969,000, up 9% from $4,209,957,000 in the same period last year.
Gross profit for Q2 2024 was $1,412,185,000, an increase of 9% compared to $1,298,511,000 in Q2 2023, resulting in a gross margin of 59.6%, up from 58.8%. The increase in gross margin was attributed to lower product costs and a decrease in product department costs as a percentage of net revenue, despite rising occupancy and distribution costs. Income from operations for Q2 2024 was $540,226,000, a 13% increase from $479,257,000 in Q2 2023, with an operating margin of 22.8%, up from 21.7%.
Net income for Q2 2024 was $392,922,000, reflecting a 15% increase from $341,603,000 in Q2 2023. Basic and diluted earnings per share for the quarter were $3.15, compared to $2.69 and $2.68, respectively, in the prior year. For the first two quarters, net income totaled $714,343,000, a 13% increase from $632,008,000 in the same period last year.
The company’s inventory as of July 28, 2024, was $1,429,043,000, up from $1,323,602,000 as of January 28, 2024. Cash and cash equivalents decreased to $1,610,112,000 from $2,243,971,000 at the beginning of the fiscal year. Lululemon has maintained a strong liquidity position, with no borrowings under its $400 million revolving credit facility, aside from letters of credit totaling $6.3 million.
Strategically, Lululemon announced plans to acquire operations and retail locations in Mexico for approximately $160 million, pending regulatory approval. The company also faced a securities class action lawsuit alleging misleading statements related to business practices and inventory allocation.
In terms of market performance, comparable sales increased by 2% in Q2 2024, with notable growth in the China Mainland, where comparable sales rose by 21%. The Americas experienced a decline of 3% in comparable sales. The company continues to focus on expanding its international presence while managing operational complexities and inventory levels.
About lululemon athletica inc.
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