LU

lululemon athletica inc. stock research

Apr 28, 2024

FY2024 Q1

lululemon athletica (LULU) Gross Margin — Quarter Ended Apr 28, 2024

Revenue and gross profit decreased from the prior quarter but increased compared to the same quarter last year. Gross margin weakened sequentially, while showing a slight improvement year over year, as cost of revenue moved in line with revenue changes.

Gross margin takeaway

Quarter ended Apr 28, 2024 · FY2024 Q1

Revenue and gross profit decreased from the prior quarter but increased compared to the same quarter last year. Gross margin weakened sequentially, while showing a slight improvement year over year, as cost of revenue moved in line with revenue changes.

  • The sequential decline in gross margin was associated with cost of revenue decreasing at a slower pace than revenue.
  • Compared to the prior quarter, gross margin was lower; compared to the same quarter a year ago, gross margin was slightly higher.

Gross margin snapshot

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

Gross margin

57.7%

Gross profit

$1.3B

Revenue

$2.2B

Cost of revenue

$933.8M

Quarter-over-quarter change

-1.7 pts

Year-over-year change

+0.2 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Jul 30, 2023$2.2B$1.3B$910.7M58.8%
Oct 29, 2023$2.2B$1.3B$947.6M57.0%
Jan 28, 2024$3.2B$1.9B$1.3B59.4%
Apr 28, 2024$2.2B$1.3B$933.8M57.7%

Quarterly comparisons

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

Previous-quarter change

Jan 28, 2024

-1.7 pts

Year-over-year change

Apr 30, 2023

+0.2 pts

What the margin says

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

The sequential decline in gross margin was associated with cost of revenue decreasing at a slower pace than revenue.

Compared to the prior quarter, gross margin was lower; compared to the same quarter a year ago, gross margin was slightly higher.

Monitor inventory levels, which increased from the prior quarter end as shown in the balance sheet.