lululemon athletica inc. stock research
FY2024 Q4
lululemon athletica (LULU) Gross Margin — Quarter Ended Feb 2, 2025
Revenue and gross profit both increased compared to the immediately preceding quarter and the same quarter one year earlier. Gross margin improved relative to both periods, driven by a lower cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Feb 2, 2025 · FY2024 Q4
Revenue and gross profit both increased compared to the immediately preceding quarter and the same quarter one year earlier. Gross margin improved relative to both periods, driven by a lower cost of revenue relative to revenue.
- The strongest observable margin driver is the improvement in gross margin from the prior quarter and the year-ago quarter, as cost of revenue grew at a slower pace than revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, all three metrics were also higher, with gross margin showing a similar improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.4%
Gross profit
$2.2B
Revenue
$3.6B
Cost of revenue
$1.4B
Quarter-over-quarter change
+1.9 pts
Year-over-year change
+1.0 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 |
|---|---|---|---|---|
| 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% |
| Feb 2, 2025 | $3.6B | $2.2B | $1.4B | 60.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 27, 2024
+1.9 pts
Year-over-year change
Jan 28, 2024
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the improvement in gross margin from the prior quarter and the year-ago quarter, as cost of revenue grew at a slower pace than revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, all three metrics were also higher, with gross margin showing a similar improvement.
Monitor the trend in cost of revenue relative to revenue, as its slower growth was the key factor behind the margin improvement.