- Lululemon Athletica Inc (NASDAQ:LULU) reported fourth-quarter sales growth of 23% year-over-year to $2.13 billion, in line with the consensus of $2.13 billion.
- Total comparable sales increased 22%, and Comparable store sales increased 32%.
- Direct to consumer net revenue increased by 17% and +16% on a constant dollar basis.
- Adjusted EPS improved to $3.37 from $2.58 in 4Q20, beating the consensus of $3.28.
- The gross margin declined by 50 bps to 58.1%. Operating income increased 29% Y/Y to $590.6 million, and margin expanded by 120 bps to 27.7%.
- Adjusted income from operations increased 27% Y/Y to $592.0 million, with a margin expansion of 90 bps to 27.8%.
- LULU opened 22 net new company-operated stores during the quarter, ending with 574 stores.
- Net cash provided by operating activities for FY21 totaled $1.39 billion, compared to $803.34 million a year back.
- LULU ended 2021 with $1.3 billion in cash and cash equivalents. For FY21, inventories increased by 49% Y/Y to $966.5 million.
- During FY21, Lululemon repurchased 2.2 million shares at an average price of $369.16 per share for $812.6 million.
- Buyback: The board approved a new stock repurchase program for up to $1 billion of the company's common shares.
- 1Q22 Outlook: LULU expects net revenue to be in the range of $1.525 billion to $1.550 billion, versus a consensus of $1.55 billion, and EPS to be in the range of $1.38 to $1.43, versus a consensus of $1.29.
- FY22 Outlook: The company expects net revenue to be in the range of $7.490 billion to $7.615 billion, versus a consensus of $6.3 billion, and EPS to be in the range of $9.15 to $9.35, versus a consensus of $7.69.
- Price Action: LULU shares are trading higher by 6.70% at $367 during the post-market session on Tuesday.
