Lululemon (NASDAQ stock code: LULU) recently released its financial reports for the fourth quarter and full year of fiscal year 2023. In the fourth quarter, global net revenue increased by 16% year-on-year to $3.2 billion; The net revenue for the whole year of 2023 increased by 19% year-on-year to $9.6 billion. On a fixed US dollar basis, comparable sales for the fiscal year 2023 increased by 14% year-on-year.
Lululemon CEO Calvin McDonald said, "We are pleased to see a strong end to the 2023 fiscal year. In the fourth quarter of the previous fiscal year, thanks to the efforts of global employees, we demonstrated sustained and steady growth in various market regions, channels, and product categories."
Lululemon was born in Canada in 1998, named after a Japanese vocabulary that means "interesting sounds" because its founder, Chip Wilson, had previously worked in Japan and was first introduced to yoga there. The company's equipment was inspired by yoga, which was just beginning to become popular in Europe and America. In 2007, lululemon was listed on the NASDAQ stock exchange in the United States.
With the continuous improvement of brand awareness, lululemon's sales have also shown an astonishing growth trend. In July 2022, lululemon's market value surpassed Adidas, becoming the world's second largest sportswear group after Nike in the yoga apparel category alone.
With the popularity and popularity of yoga in the domestic market, lululemon's sales have also performed well. The latest data shows that in the fourth quarter of the 2023 fiscal year, the net revenue of the company's China business (excluding Hong Kong, Macao, and Taiwan) increased by 78% year-on-year, and the net revenue of the Chinese market for the entire fiscal year increased by 67% year-on-year. As of the end of fiscal year 2023, lululemon has 127 stores in mainland China.
"We are extremely excited about the growth potential of the Chinese market. This strong performance is attributed to our localized brand strategy, which includes establishing deep connections with ambassadors and community partners, organizing exciting and well received brand events, and maintaining a steady pace of store expansion." Lululemon CEO Calvin McDonald said in a earnings conference call, "Our team will continue to maintain this momentum. We are very optimistic about future opportunities and look forward to them."
The 2023 China Fitness Industry Data Report shows that 2023 is an accelerating year for China's sports and fitness industry. The epidemic has receded, chain fitness clubs are facing bankruptcy, fitness studios are welcomed by consumers, and yoga and Pilates are entering a peak period.
However, although lululemon started with yoga clothing, the company is also looking for new breakthroughs, and now its footwear business has become one of its core products.
In February of this year, lululemon announced the official launch of its first men's footwear collection, including Cityverse sneakers and Beyond Feel running shoes; On the eve of International Women's Day, lululemon held its first women's super marathon event FURTHER, a series of innovative equipment tailored to the athletes participating in the event. In addition, Lululemon will also launch innovative golf products for the men's customer base in the future.
Lululemon expects its net revenue to grow by approximately 9% to 10% in the first quarter of fiscal year 2024, ranging from $2.175 billion to $2.20 billion. 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%.