lululemon CEO pleased with growing sales momentum

29 Mar '10

4 min read

lululemon athletica inc announced financial results for the fourth quarter and fiscal year ended January 31, 2010.

For the fourth quarter ended January 31, 2010:

• Net revenue for the quarter increased 54.5% to $160.6 million from $103.9 million in the fourth quarter of fiscal 2008. Net revenue from corporate-owned stores was $137.4 million for the quarter, an increase of 52.2% from $90.3 million in the fourth quarter of fiscal 2008, and comparable-store sales increased by 29% on a constant-dollar basis.
• Gross profit for the quarter increased by 67.6% to $86.6 million, and as a percentage of net revenue gross profit increased to 53.9% for the quarter from 49.7% in the fourth quarter of fiscal 2008.
• Income from operations for the quarter increased by 158.3% to $41.4 million, and as a percentage of net revenue was 25.8% compared to 15.4% of net revenue in the fourth quarter of fiscal 2008, which included a $4.4 million ($0.04 per share) asset impairment charge related to store assets and lease exit costs.
• Diluted earnings per share for the quarter was $0.40 on net income of $28.5 million, compared to diluted earnings per share of $0.16 on net income of $10.9 million in the fourth quarter of fiscal 2008. The tax rate for the quarter was 31.4% versus 32.7% a year ago.

For the fiscal year ended January 31, 2010:

• Net revenue for the fiscal year increased 28.1% to $452.9 million from $353.5 million in fiscal 2008. Net revenue from corporate-owned stores was $393.5 million, an increase of 24.7% from $315.5 million in fiscal 2008, and comparable-store sales increased by 9% on a constant-dollar basis.
• Gross profit for the fiscal year as a percentage of net revenue decreased to 49.3% from 50.7% of net revenue in fiscal 2008.
• Income from operations for the fiscal year increased by 53.0% to $86.5 million, and as a percentage of net revenue was 19.1% compared to 16.0% of net revenue in the fourth quarter of fiscal 2008, which included a $4.4 million asset impairment charge related to store assets and lease exit costs.
• Diluted earnings per share for the fiscal year was $0.82 on net income of $58.3 million, compared to diluted earnings per share of $0.55 on net income of $39.4 million in fiscal 2008.

The Company ended fiscal 2009 with $159.6 million in cash and cash equivalents compared to $56.8 million at the end of fiscal 2008. Inventory at the end of fiscal 2009 totaled $44.1 million compared to $52.1 million at the end of fiscal 2008.

Christine Day, lululemon's CEO stated: “We are very pleased with the growing sales momentum in our business which has accelerated as the economy has improved and with some of our key initiatives which have taken hold, such as expanding our running line, elevated product to give more value to our customers, and our e-commerce launch. Our 29% comparable-store sales increase reflects the strength of the lululemon brand driven by our quality, design, product innovation and unique positioning.”

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