lululemon witnesses a consistent sales growth

21 Mar '11

4 min read

• Gross profit for the fiscal year increased by 77% to $394.9 million from $223.1 million in fiscal 2009. As a percentage of net revenue, gross profit increased to 55.5% for fiscal 2010 from 49.3% in fiscal 2009.
• Income from operations increased by 108% to $180.4 million, and as a percentage of net revenue was 25.3% compared to 19.1% of net revenue in fiscal 2009.
• The tax rate for fiscal 2010 was 33.3% compared to 32.8% for fiscal 2009.
• Diluted earnings per share in fiscal 2010 increased 106% to $1.69 on net income of $121.8 million, compared to diluted earnings per share of $0.82 on net income of $58.3 million in fiscal 2009.

The Company ended fiscal 2010 with $316.3 million in cash and cash equivalents compared to $159.6 million at the end of fiscal 2009. Inventory at the end of fiscal 2010 totaled $57.5 million compared to $44.1 million at the end of fiscal 2009. The Company ended the quarter with 137 stores in North America and Australia.

Updated Outlook

For the first quarter of fiscal 2011, we expect net revenue to be in the range of $175 million to $180 million based on a comparable-store sales percentage increase in the low double digits on a constant-dollar basis. Diluted earnings per share are expected to be in the range of $0.36 to $0.38 for the quarter. This assumes 72.4 million diluted weighted-average shares outstanding and a 36% tax rate.

For fiscal 2011, we expect net revenue to be in the range of $885 million to $900 million and diluted earnings per share are expected to be in the range of $1.90 to $2.00 for the full year. This assumes a tax rate of 36% and 72.6 million diluted weighted-average shares outstanding.

lululemon athletica inc

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