Lululemon released its fourth quarter and full-year results (Photographer: Stephanie Keith/Bloomberg via Getty Images).

Lululemon profits for the fourth quarter and full year sank on higher cost of goods and increased expenses despite a healthy sales increase across both periods.

Fourth quarter results in-brief:

  • Net revenue increased 30% to US$2.8bn.
  • Gross profit was US$1.52bn.
  • Income from operations decreased 47% to US$314m.
  • Operating margin decreased to 11.3% from 27.7% in the fourth quarter of 2021. 
  • Net income decreased to US$119.8m.

Full-year results in-brief:

  • Net revenue increased 30% to US$8.1bn.
  • Gross profit was US$4.49bn.
  • Income from operations was flat at US$1.3bn.
  • Operating margin decreased to 16.4% from 21.3% in 2021.
  • Net income decreased to US$854.8m.

Calvin McDonald, CEO, hailed the performance, praising the company’s innovative products, powerful guest experience, and strategic market expansion.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Outlook 2023

McDonald shared the company’s outlook moving forward, saying, “As we enter 2023, we look forward to another year of strong momentum across the globe and delivering on our Power of Three x2 growth plan, which calls for a doubling of the business from 2021 net revenue of $6.25bn to $12.5bn by 2026.”

Building on the two-tier membership program launched in October 2022, the Company will be expanding the lululemon Studio premium tier. Launching in summer 2023, it will enable guests to access its digital fitness content via a new app for a lower monthly fee.

Additionally, Lululemon is evolving its Studio strategy and will focus on digital app-based services. It will continue to provide in-home hardware and content for members who own or would like to purchase a lululemon Studio Mirror. Currently there are no changes planned for the free, Essentials tier of the membership program.

The Company believes this strategy will create efficiencies and enable more guests to experience the full range of digital fitness content, while also building a larger community of guests with a deeper connection to lululemon.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.