Lululemon Reports Strong Fiscal 2023 Results but Faces Slower Growth in North America

Despite surpassing earnings expectations, Lululemon's cautious outlook for 2024 and slowed growth in its largest market, North America, led to a sharp decline in its stock price.

Lululemon Athletica Inc. announced holiday earnings that exceeded expectations, with a 16% increase in fourth quarter revenue to $3.2 billion and a 19% increase in full year revenue to $9.6 billion.
The company's guidance for 2024 came in below estimates, projecting net revenue to be between $10.7 billion and $10.8 billion, representing a growth of 11% to 12%.
Shares fell approximately 10% in extended trading due to the cautious outlook and slowed growth in North America, where sales rose only 9% compared to 29% in the previous year.
International sales continue to be a bright spot, growing 54% on a reported basis, with China sales growing 78% and other markets growing 36%.
CEO Calvin McDonald highlighted a shift in U.S. consumer behavior and a slower start to the year in the market, while emphasizing the company's strong international performance and ongoing investments for growth.