Lululemon's 3Q24 Earnings Show U.S. Sales Decline Amid Strong Growth in China and Europe

Lululemon Athletica Inc. reported its third-quarter earnings for fiscal year 2024, revealing a mixed performance as the company grapples with slowing sales in the U.S. Despite strong international sales growth, particularly in China and Europe, U.S. sales have declined for the second consecutive quarter. Analysts noted that while the earnings exceeded lowered expectations, the company faces challenges in maintaining growth within the competitive athletic apparel market. The CEO expressed confidence in a potential sales inflection in the U.S. market, while some analysts highlighted the importance of introducing new products to attract customers. Overall, Lululemon's inventory levels and gross margins remain strong, indicating resilience amid market pressures.