Summary by Futu AI
Lululemon Athletica reported a robust financial performance for the second quarter of 2024, with net revenue increasing by 7% to $2.4 billion compared to the same quarter in 2023. The company's comparable sales saw a 2% rise, or 3% on a constant dollar basis. Gross profit grew by 9% to $1.4 billion, and gross margin improved by 80 basis points to 59.6%. Operating income saw a significant jump of 13% to $540.2 million, with operating margin expanding by 110 basis points to 22.8%. Diluted earnings per share were up from $2.68 in Q2 2023 to $3.15 in Q2 2024. In terms of business development, Lululemon entered into an agreement to acquire operations and branded retail locations in Mexico for approximately $160 million in cash, subject to regulatory approval. The company's future plans include continued expansion of product offerings and leveraging marketing and branding strategies to drive growth. However, Lululemon is also facing a securities class action lawsuit alleging false and misleading statements related to its business and product offerings, which the company intends to defend vigorously.
