Lululemon Athletica‘s CEO Calvin McDonald said: “We’re navigating what has been a slower start to the year in this market,” however the company reported fiscal year 2023 (FY23) revenues jumping 19% to $9.6bn from $8.1bn and international markets, including Canada staying strong.

Americas saw a 12% increase in revenue for the year with international sales growing 54%, China mainland 67% and the rest of the world increased 43%.

Although the consumer environment in the US has been “somewhat challenging” McDonald said he remains hopeful about Lululemon’s opportunities to grow in 2024.

The company has five to 10 new store openings planned and 15 to 20 optimisations in the US and 30 outside of North America in an attempt to open opportunities for its “underpenetrated” international markets.

McDonald shared his excitement about the potential for Lululemon in China, with chief financial officer Meghan Frank adding that she believes the country’s growth rate will be “significantly above” its 10-11% guidance for the full year.

Despite the business remaining strong in China McDonald added the company will be keeping a close eye on the macro-environment in the region.

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Lululemon Q4 results:

  • Revenue increased 16% to 3.2bn
  • Income from operations increased 191% to $913.9m
  • Net income grew to $670m from $120m the prior year
  • America’s net revenue increased by 9%
  • International revenue increased 54%.

Lululemon predicts an 11-12% revenue growth in FY24

In the full year 2024, the retailer expects revenue to be in the range of $10.7bn to $10.8bn and forecasts gross margin to be flat compared to the adjusted gross margin in 2023.

Diluted earnings per share are expected to be in the range of $14.00 to $14.20 for the year.

For the first quarter of 2024, Lululemon expects net revenue to be in the range of $2.175bn to $2.2bn, representing growth of 9% to 10%.

Diluted earnings per share are expected to be in the range of $2.35 to $2.40 for the quarter.

In February a complaint filed to the independent law enforcement agency Competition Bureau Canada, accused Lululemon of misleading customers about its environmental impact.