Today, Lululemon (NASDAQ stock code: LULU) released its financial report for the first quarter of the 2024 fiscal year. In the first quarter, the company's global net revenue increased by 10% year-on-year to $2.2 billion, with international business net revenue increasing by 35%.
Lululemon CEO Calvin McDonald said, "In the first quarter, we continued to show strong growth momentum in the international market, and our brand continued to receive widespread positive feedback globally. Product innovation in various categories is highly favored by customers. Looking ahead to the 2024 fiscal year and beyond, we still have broad growth prospects, and I am confident in our team and will continue to provide excellent experiences for customers with outstanding performance."
Specifically, in the Chinese Mainland market, in the first quarter of fiscal year 2024, the net revenue of business in Chinese Mainland increased by 45% year on year, and on the basis of fixed US dollars, the net revenue increased by 52% year on year. Calvin McDonald, CEO of lululemon, said in the financial report conference call: "We performed very well in the Chinese Mainland market this quarter. We are still in the early stage of development in Chinese Mainland, and there is huge room for growth in terms of store expansion, digital business, brand awareness, and so on. During my visit to the Chinese Mainland market last week, I witnessed that our brand is resonating strongly with local customers, and also in other markets around the world, which made us very excited."
When it comes to product innovation, Calvin McDonald gave a review and outlook during the earnings conference call. He stated that the brand will continue to maintain strong momentum in product innovation and will launch a series of major product innovations in the near future and the second half of the year. "In the first quarter, we successfully held a media conference for the 2024 Spring/Summer footwear series in New York, including Cityverse sneakers and Beyond Feel running shoes. The new footwear series performed exceptionally well after its launch, especially receiving unexpected responses from male customers. Subsequently, we held the brand's first women's super marathon event, FURTHER, in California, unveiling innovative products designed for female athletes."
Calvin McDonald shared, "In the near future and the second half of the year, we plan to create more exciting new tight pants for women's customers. In terms of men's clothing, we will continue to enrich the Pace Breaker and Zeroed In sports shorts series that are loved by men's customers. Of particular note is the new ShowZeroTM technology, which we have applied to the design of men's casual shirts recently launched. We use innovative fabric structures to maintain a comfortable touch while preventing sweat from appearing easily. Customers can wear it in various scenarios such as golf or daily commuting."
In terms of brand building, Calvin McDonald shared during a conference call that we will continue to increase brand awareness and attract more people to become Lululemon's customers through our community activities. It is worth mentioning that on the occasion of the 20th anniversary of F1 China Grand Prix, we joined hands with Zhou Guanyu, China's first F1 driver and brand ambassador, to open the theme activity of "getting on the foot, my pace" in Chinese Mainland, inspired by cityverse sports shoes. At the same time, we created its first home show special exhibition in Shanghai, cheering for his first home battle. In the next second quarter, we will hold the "Summer Joy Challenge" in Chinese Mainland for the fourth consecutive year.
In addition, Calvin McDonald also stated in a conference call, "Overall, there is still a lot of room for improvement in our brand awareness. We will continue to provide customers with a better experience and inspire their spirit through unique brand approaches and unique product innovations."
Lululemon CFO Meghan Frank said, "The performance in the first quarter exceeded expectations, thanks to our flexible operational management and continuous strategic investment. Looking ahead to this year, we will continue to focus on leveraging our brand advantages and differentiated operating models to further drive the implementation of our 'Power of Three × 2' strategy to promote business growth. We are excited about the current development opportunities and believe that we have sufficient advantages to drive long-term sustainable growth."
For the second quarter of fiscal year 2024, lululemon expects net revenue to be between $2.40 billion and $2.42 billion, an increase of approximately 9% to 10%. The diluted earnings per share for this quarter are expected to be between $2.92 and $2.97. For the 2024 fiscal year, lululemon expects net revenue to be between $10.7 billion and $10.8 billion, an increase of approximately 11% to 12%; If excluding the 53rd week of 2024, the growth is approximately 10% to 11%. It is expected that the diluted earnings per share will be between $14.27 and $14.47 this year.