Lululemon: record profits in 2023 with worrying growth

This represents a marked slowdown compared with Lululemon’s pre-Covid-19 results. On March 21, Canadian sportswear retailer announced sales of US$9.62 billion in 2023, up by 19%. The net margin rose from 10.5% of sales in 2022 to 16% in 2023. However, C.E.O. Calvin McDonald’s statements on slowing growth worried the financial markets. For 2024, Lululemon forecasts sales of around US$10.7 billion, i.e. estimated growth of around 11.8%. For Q1 2024, sales are expected to grow by 9.5%.

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