Lululemon Athletica Inc. (LULU) reported strong financial results for the fourth quarter and full fiscal year 2024, which ended on February 2, 2025, showcasing impressive growth across both domestic and international markets, supported by product innovation and continued brand momentum.

In the fourth quarter, net revenue rose 13% to $3.6 billion, or 14% on a constant dollar basis. Excluding the extra week from the 53-week fiscal year, revenue still saw a healthy 8% increase, reflecting solid underlying demand. Comparable sales increased 3%, or 4% on a constant dollar basis. While comparable sales in the Americas were flat, international comparable sales surged 20%, or 22% on a constant dollar basis, highlighting the strength of Lululemon’s global expansion strategy.

Profitability also strengthened. Gross profit increased 15% to $2.2 billion, and gross margin expanded by 100 basis points to 60.4%, signaling strong pricing power and effective inventory management. Income from operations rose 14% to $1.0 billion, and the operating margin improved to 28.9%, up 40 basis points from the previous year. On the bottom line, net income grew to $748.4 million, and diluted earnings per share (EPS) reached $6.14, up from $5.29 in Q4 2023.

For the full fiscal year 2024, Lululemon reported net revenue of $10.6 billion, an increase of 10%, or 11% on a constant dollar basis. Excluding the 53rd week, revenue was still up 8%, indicating sustained consumer interest. Gross profit rose 12% to $6.3 billion, with the gross margin climbing 90 basis points to 59.2%. Income from operations increased 17% to $2.5 billion, and the operating margin improved to 23.7%, a gain of 150 basis points year-over-year. Net income for the year reached $1.8 billion, with diluted EPS of $14.64, compared to $12.20 in fiscal 2023.

In terms of shareholder returns, the company was active in repurchasing stock, buying back 0.9 million shares for $332.2 million during the fourth quarter and 5.1 million shares for $1.6 billion over the full year. The company also continued expanding its physical footprint, opening 18 net new company-operated stores in Q4, bringing the total to 767 stores globally.

Looking ahead, Lululemon expects Q1 2025 net revenue to range between $2.335 billion and $2.355 billion, representing projected growth of 6% to 7%.

Overall, Lululemon’s Q4 and FY 2024 performance underscores its ability to drive profitability and growth simultaneously, particularly through international market expansion, strong brand loyalty, and a focus on innovative product offerings. The company remains well-positioned for continued momentum heading into 2025.