lululemon athletica inc. stock research
FY2024 Q3
lululemon athletica (LULU) Gross Margin — Quarter Ended Oct 27, 2024
Revenue and gross profit both increased compared to the same quarter last year, while cost of revenue also rose. Gross margin improved year over year but weakened slightly from the prior quarter.
Gross margin takeaway
Quarter ended Oct 27, 2024 · FY2024 Q3
Revenue and gross profit both increased compared to the same quarter last year, while cost of revenue also rose. Gross margin improved year over year but weakened slightly from the prior quarter.
- Gross margin was higher than a year ago, driven by a larger increase in gross profit relative to cost of revenue. The sequential decline from the prior quarter reflects a proportionally larger rise in cost of revenue compared to revenue.
- Compared to the prior quarter, revenue was stable while cost of revenue increased, leading to a slightly lower gross margin. Versus the same quarter last year, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.5%
Gross profit
$1.4B
Revenue
$2.4B
Cost of revenue
$995.1M
Quarter-over-quarter change
-1.1 pts
Year-over-year change
+1.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jan 28, 2024 | $3.2B | $1.9B | $1.3B | 59.4% |
| Apr 28, 2024 | $2.2B | $1.3B | $933.8M | 57.7% |
| Jul 28, 2024 | $2.4B | $1.4B | $958.9M | 59.6% |
| Oct 27, 2024 | $2.4B | $1.4B | $995.1M | 58.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 28, 2024
-1.1 pts
Year-over-year change
Oct 29, 2023
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin was higher than a year ago, driven by a larger increase in gross profit relative to cost of revenue. The sequential decline from the prior quarter reflects a proportionally larger rise in cost of revenue compared to revenue.
Compared to the prior quarter, revenue was stable while cost of revenue increased, leading to a slightly lower gross margin. Versus the same quarter last year, revenue, gross profit, and gross margin were all higher.
Monitor the trend in cost of revenue relative to revenue, as its sequential increase outpaced revenue growth and compressed gross margin.