lululemon introduces fiscal 2008 guidance

04 Apr '08

3 min read

• Gross profit as a percentage of net revenue increased 230 basis points to 53.3% of net revenue from 51.0% of net revenue in the twelve months of fiscal 2006.

• Income from operations was $50.1 million, or 18.2% of revenues, compared to $16.2 million, or 10.9% of revenues, in the twelve months of fiscal 2006.

• Diluted earnings per share was $0.45 on net income of $30.8 million, compared to diluted earnings per share of $0.11 on net income of $7.7 million for the same period in fiscal 2006. Excluding a one-time charge for the settlement of a lawsuit, diluted earnings per share for fiscal 2006 was $0.18.

Robert Meers, lululemon's CEO stated: “We are extremely pleased with the accelerated growth of our fourth quarter results. We believe that the strong momentum generated in 2007 puts us in great standing for 2008. The Company will continue to deliver innovative performance apparel, a distinctive store experience, and a community-based marketing approach, focusing on U.S. expansion.”

Mr. Meers continued: “While the current overall consumer environment may be challenging, the increasing loyalty of our guests and our unique positioning in the historically resilient active and healthy-lifestyle market, are providing for continued acceptance of our brand.”

Discontinuing Operations in Japan:
The Company also announced that it will be discontinuing its operations in Japan. lululemon athletica opened its first store in Japan in 2005 and has operated in Japan through a joint venture known as lululemon Japan Inc. with Japanese apparel company, Descente Ltd, since 2006. lululemon Japan Inc currently has four stores.

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