Executive Summary
Lululemon Athletica Inc reported Q3 2024 (QQ3 2024) revenue of $2.39666 billion, representing a year-over-year decline of 25.22% and a sequential QoQ increase of 1.08%. The decline reflects tougher year-ago comparables and macro headwinds within the premium apparel segment, yet the company delivered a robust gross margin of 58.48%, an operating margin of 20.47%, and a solid net income of $351.87 million (EPS $2.87). Despite the revenue softness, EBITDA was $604.26 million and free cash flow reached $122.18 million, underscoring meaningful profitability leverage and ongoing cash-generation capability. Cash from operating activities stood at $300.66 million, while cash and cash equivalents totaled $1.188 billion at period-end; net debt was modest at approximately $325.68 million on total debt of $1.514 billion, illustrating a healthy liquidity position amid a high-quality balance sheet.
Key Performance Indicators
QoQ: -0.75% | YoY:-26.36%
QoQ: -9.17% | YoY:-47.88%
QoQ: -10.45% | YoY:-47.44%
QoQ: -8.89% | YoY:-45.85%
Key Insights
Revenue: $2.39666B; YoY -25.22%; QoQ +1.08%.; Gross Profit: $1.401606B; YoY -26.36%; QoQ -0.75%; Gross Margin: 58.48%; Operating Income: $490.661M; YoY -47.88%; QoQ -9.17%; Operating Margin: 20.47%; Net Income: $351.87M; YoY -47.44%; QoQ -10.45%; Net Margin: 14.68%; EPS: $2.87; YoY -45.85%; QoQ -8.89%; EBITDA: $604.26M; EBITDA Margin: ~25.21%; Cash Flow from Operations: $300.66M; Free Cash Flow: $122.18M; Capital Expenditures: $178.48M; Cash and Cash Equivalents: $1.188B; Total Debt: $1.514B; Ne...
Financial Highlights
Revenue: $2.39666B; YoY -25.22%; QoQ +1.08%.; Gross Profit: $1.401606B; YoY -26.36%; QoQ -0.75%; Gross Margin: 58.48%; Operating Income: $490.661M; YoY -47.88%; QoQ -9.17%; Operating Margin: 20.47%; Net Income: $351.87M; YoY -47.44%; QoQ -10.45%; Net Margin: 14.68%; EPS: $2.87; YoY -45.85%; QoQ -8.89%; EBITDA: $604.26M; EBITDA Margin: ~25.21%; Cash Flow from Operations: $300.66M; Free Cash Flow: $122.18M; Capital Expenditures: $178.48M; Cash and Cash Equivalents: $1.188B; Total Debt: $1.514B; Net Debt: $0.326B; Current Ratio: 2.00; Quick Ratio: 1.00; Cash Conversion Cycle: 143.03 days; DSO: 15.05 days; DIO: 162.89 days; DPO: 34.91 days; ROA: 4.97%; ROE: 8.83%; ROCE: 9.29%; Debt to Equity: 0.38; P/E: 26.81x; P/BV: 9.47x; P/S: 15.74x; EV/EBITDA: 77.57x; FCF Yield (approximate): positive; Note: YoY/QoQ comparisons reflect the quarterly data provided in QQ3 2024 results.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.40B |
-25.22% |
1.08% |
| Gross Profit |
1.40B |
-26.36% |
-0.75% |
| Operating Income |
490.66M |
-47.88% |
-9.17% |
| Net Income |
351.87M |
-47.44% |
-10.45% |
| EPS |
2.87 |
-45.85% |
-8.89% |
Key Financial Ratios
operatingProfitMargin
20.5%
operatingCashFlowPerShare
$2.45
Management Commentary
No earnings call transcript data provided in the supplied sources.
Forward Guidance
No formal guidance was provided in the supplied data. Management commentary (if any) from the QQ3 2024 release is not included here. In the absence of explicit guidance, investors should monitor top-line stabilization and potential sequential improvements in revenue, the trajectory of gross and operating margins, inventory levels, and the pace of cash flow generation. Key variables likely to influence the outlook include: (1) continued demand recovery in core regions and potential international expansion, (2) cost discipline and SG&A management, (3) balance sheet deleveraging opportunities given available free cash flow, and (4) competitive dynamics and pricing heat in premium apparel. Investors should watch quarterly cadence for signs of revenue stabilization and margin resilience to assess the earnings power of the brand over the near term.