Athleisure Giant’s Impressive FY21 Performance
- Lululemon surpassed £6bn in revenues for the first time
- 4th quarter net revenues increased by 23%
- Company-operated store net revenue increased by 70%
- Gross profits increased 46% to $3.6bn (£2.7bn)
- Gross margin increased 170 basis points to 57.7%
- 53 new company-operated stores opened worldwide
- Total stores reached 574 globally
- Q1 fiscal 2022 net revenues expected between $1.525bn and $1.550bn
- Diluted EPS expected between $1.38 to $1.43
- CEO Calvin McDonald: ‘We are entering the new year from a position of strength’
- Successful year despite challenging macro environment
Lululemon, the athleisure brand, has reported a strong financial year 2021 performance with revenues surpassing £6bn for the first time. The company opened 53 new company-operated stores during the year, bringing the global store count to 574. Net revenues increased by 23% in the fourth quarter, and gross profits rose 46% to £2.7bn. Gross margin also improved by 170 basis points to 57.7%. The company expects net revenues for Q1 fiscal 2022 to be between $1.525bn and $1.550bn, representing a growth of 24% to 26%. CEO Calvin McDonald praised the team’s performance amidst challenging macroeconomic conditions.
Factuality Level: 10
Factuality Justification: The article provides accurate information about Lululemon’s financial performance, including revenue growth, net profits, and store expansion. It also includes a quote from the CEO that supports the positive outlook for the company’s future.
Noise Level: 2
Noise Justification: The article provides relevant information about Lululemon’s financial performance and growth, with no irrelevant or misleading content. It includes specific numbers and data to support its claims, and stays on topic without diving into unrelated territories.
Financial Relevance: Yes
Financial Markets Impacted: Lululemon’s stock price may be impacted by this news.
Financial Rating Justification: The article discusses Lululemon’s financial performance, including revenue growth and profit increases, which is relevant to finance. Additionally, the company’s expectations for future quarterly net revenues and earnings per share can potentially affect its stock price in financial markets.
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Extreme Rating Justification: No extreme events mentioned in the article.
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