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lululemon athletica has very successful first quarter
13
Jun '11
lululemon athletica inc announced financial results for the first quarter ended May 1, 2011.

For the first quarter ended May 1, 2011:

• Net revenue for the quarter increased 35% to $186.8 million from $138.3 million in the first quarter of fiscal 2010.
• Comparable stores sales for the first quarter increased by 16% on a constant dollar basis.
• Direct to consumer revenue increased 51% to $13.8 million, or 7.4% of total Company sales, in the first quarter of fiscal 2011, an increase from 6.6% of total Company sales in the first quarter of fiscal 2010.
• Gross profit for the quarter increased by 48% to $109.7 million, and as a percentage of net revenue gross profit increased to 58.7% for the quarter from 53.8% in the first quarter of fiscal 2010. The increase included 140 basis points from the non-recurring adjustment for the recognition of input tax credits in the first quarter of fiscal 2011.
• Income from operations for the quarter increased by 59% to $51.7 million, and as a percentage of net revenue was 27.7% compared to 23.5% of net revenue in the first quarter of fiscal 2010.
• The tax rate for the quarter was 36.3% compared to 40.0% a year ago. The decrease resulted from a revision to management's plans for repatriation of unremitted earnings of the Canadian operating subsidiary.
• Diluted earnings per share for the quarter were $0.46 on net income of $33.4 million, compared to diluted earnings per share of $0.27 on net income of $19.6 million in the first quarter of fiscal 2010. The increase included $0.02 in diluted earnings per share from the non-recurring adjustment for the recognition of input tax credits in the first quarter of fiscal 2011.

The Company ended the first quarter of fiscal 2011 with $260.9 million in cash and cash equivalents compared to $173.6 million at the end of the first quarter of fiscal 2010. Inventory at the end of the first quarter of fiscal 2011 totaled $64.4 million compared to $50.8 million at the end of the first quarter of fiscal 2010. The Company ended the quarter with 142 stores in North America and Australia.

Christine Day, lululemon's CEO stated: “We've had a great start to the year and a very successful first quarter considering our lean inventory levels. We were able to generate strong sales and earnings growth while also focusing on a successful transition of our e-Commerce platform in-house. While cautious about the macro-environment, we remain confident that our business momentum will continue through fiscal 2011.”

Updated Outlook

For the second quarter of fiscal 2011, we expect net revenue to be in the range of $200 million to $205 million based on a comparable-store sales percentage increase in the mid-to-upper teens on a constant-dollar basis. Diluted earnings per share are expected to be in the range of $0.42 to $0.44 for the quarter. This assumes 72.6 million diluted weighted-average shares outstanding and a 36% tax rate.

For the full fiscal 2011, we now expect net revenue to be in the range of $915 million to $930 million and diluted earnings per share are expected to be in the range of $2.10 to $2.16 for the full year. This assumes a tax rate of 36% and 72.8 million diluted weighted-average shares outstanding.

lululemon athletica inc

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