On August 29th, Lululemon Athletica Inc. announced its financial results for the second quarter of 2024, reporting a 7% year-over-year increase in total revenue, reaching $2.4 billion. The company saw particularly strong growth in Mainland China and other global markets, with sales increasing by 34% and 24%, respectively. In contrast, sales in the U.S. market grew by only 1%, with same-store sales declining by 3%.
During the second quarter, Lululemon opened five new stores in Mainland China, four in other global markets, and one in the U.S., bringing the total number of stores worldwide to 721. This expansion underscores the brand’s strategy to strengthen its global presence, with a particular focus on accelerating growth in international markets.
Gross margin reached 59.6%, an improvement of 80 basis points from 58.8% in the same period last year. This increase was primarily due to lower product costs, although foreign exchange fluctuations had a negative impact of 20 basis points.
Meanwhile, selling, general, and administrative (SG&A) expenses amounted to $872 million, representing 36.8% of revenue. This is a slight improvement from 37.0% in the previous year, despite continued investments in brand initiatives and other costs.
Operating income increased to $540.2 million, up from $479.3 million in the same quarter last year. Net income was $392.9 million, with diluted earnings per share of $3.15, compared to $2.68 per share in the previous year.
Additionally, Lululemon repurchased 1.9 million shares in the second quarter for $583.7 million, continuing its active shareholder return policy to mitigate share dilution.
However, while international markets continue to perform strongly, the slowdown in the U.S. market has emerged as a challenge. The company recognizes the need to continue strengthening its global brand while rebuilding its competitiveness in the U.S. market.