LU

lululemon athletica inc. stock research

Apr 30, 2023

FY2023 Q1

lululemon athletica (LULU) Gross Margin — Quarter Ended Apr 30, 2023

Revenue decreased from the prior quarter but increased from the same quarter last year. Gross profit and cost of revenue followed similar directional changes, with gross margin improving in both comparisons.

Gross margin takeaway

Quarter ended Apr 30, 2023 · FY2023 Q1

Revenue decreased from the prior quarter but increased from the same quarter last year. Gross profit and cost of revenue followed similar directional changes, with gross margin improving in both comparisons.

  • The gross margin improvement was supported by a lower cost of revenue relative to revenue compared to both the preceding quarter and the year-ago quarter.
  • Compared to the immediately preceding quarter, revenue was lower while gross margin was higher. Compared to the same quarter one year earlier, both revenue and gross margin were higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

57.5%

Gross profit

$1.2B

Revenue

$2.0B

Cost of revenue

$850.0M

Quarter-over-quarter change

+2.4 pts

Year-over-year change

+3.6 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jan 29, 2023$2.8B$1.5B$1.2B55.1%
Apr 30, 2023$2.0B$1.2B$850.0M57.5%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jan 29, 2023

+2.4 pts

Year-over-year change

May 1, 2022

+3.6 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin improvement was supported by a lower cost of revenue relative to revenue compared to both the preceding quarter and the year-ago quarter.

Compared to the immediately preceding quarter, revenue was lower while gross margin was higher. Compared to the same quarter one year earlier, both revenue and gross margin were higher.

Monitor inventory levels, which increased from the prior quarter end, as they may influence future cost of revenue.