Q2 2024 Lululemon Athletica Inc Earnings Call Transcript
Key Points
- Total revenue increased by 7% or 8% in constant currency.
- Earnings per share increased by 18%, driven by strong gross margin.
- International revenue increased by 29% or 31% in constant currency, with significant growth in China Mainland and the Rest of World segment.
- Men's revenue grew by 11%, showcasing strong performance across the assortment.
- Lululemon repurchased $584 million of stock in Q2, demonstrating confidence in the business.
- Revenue in the US was flat, indicating a slowdown in the domestic market.
- Women's business experienced a slowdown due to reduced newness in core and seasonal styles.
- The company had to pause sales of the new Breeze Through product due to design issues, impacting innovation momentum.
- Guidance for the second half of the year remains cautious due to macroeconomic uncertainties and a shorter holiday shopping season.
- SG&A expenses showed only 20 basis points of leverage, below the guidance of 40 to 60 basis points, due to lower than expected top-line growth.
Please stand by for streaming text.
Thank you very much for standing by. This is the conference operator. Welcome to the Lululemon Athletica, Inc, second quarter 2024 results conference call. As a reminder, all participants are in listen only mode. The conference is being recorded.
After the presentation, there will be an opportunity to ask questions. Analysts who wish to join the question queue. You may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then the bill.
I would now like to turn the conference over to Howard Tubin, Vice President, Investor Relations for Lululemon Athletica. Please go ahead.
Thank you. Good afternoon. Welcome to the Lululemon second Quarter Earnings Conference Call. Joining me today to talk about our results for Calvin McDonald, CEO, and Meghan Frank, CFO.
Before we get started, I'd like to
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