Lululemon Athletica Inc (NASDAQ:LULU) stock rose 12.90% (As on March 29, 11:20:25 AM UTC-4, Source: Google Finance) after the company beat expectations for revenue and profit in the fourth quarter. Net revenue increased 29% in North America and increased 35% internationally. Total comparable sales increased 27%, or 30% on a constant dollar basis. Comparable store sales increased 15%, or 17% on a constant dollar basis. Direct to consumer net revenue increased 37%, or 39% on a constant dollar basis.  Adjusted gross margin decreased 70 basis points to 57.4%. Adjusted income from operations increased 33% to $785.3 million. Adjusted operating margin increased 50 basis points to 28.3%. The Company ended 2022 with $1.2 billion in cash and cash equivalents compared to $1.3 billion at the end of 2021. It had $393.5 million of capacity under its committed revolving credit facility at the end of 2022. Inventories at the end of 2022 increased by 50% to $1.4 billion compared to $966.5 million at the end of 2021. This is inclusive of a $62.9 million provision against inventory related to lululemon Studio, which reduced the inventory growth rate by seven percentage points.

LULU in the fourth quarter of FY 22 has reported the adjusted earnings per share of $4.40, beating the analysts’ estimates for the adjusted earnings per share of $4.26. The company had reported the adjusted revenue growth of 30 percent to $2.8 billion in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $2.7 billion. The company also said full-year revenue rose 30% to $8.1B and adjusted EPS for the year was $10.07. Analysts expected revenue of $8B and adjusted full-year earnings per share of $9.90.

Additionally, the Company repurchased 0.2 million shares of its own common stock at an average price of $323.14 per share for a cost of $68.7 million. The Company opened 32 net new company-operated stores during the quarter, ending with 655 stores.

lululemon athletica sees Q1 2024 EPS of $1.93-$2.00, versus the consensus of $1.64. lululemon athletica sees Q1 2024 revenue of $1.89-1.93B, versus the consensus of $1.85B.

lululemon athletica sees FY2024 EPS of $11.50-$11.72, versus the consensus of $11.26. lululemon athletica sees FY2024 revenue of $9.3-9.41B, versus the consensus of $9.14B.

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