Despite hike in revenues, net income at NASDAQ-listed and yoga-inspired athletic apparel retailer - lululemon athletica declined in the second quarter ended August 3, 2014.
In the second quarter of 2014, net revenue increased 13% to $390.7 million from $344.5 million in the second quarter of 2013.Despite hike in revenues, net income at NASDAQ-listed and yoga-inspired athletic apparel retailer - lululemon athletica declined in the second #
However, diluted earnings per share for the second quarter of 2013 fell to $0.33 on a net income of $48.7 million, compared to $0.39 on net income of $56.5 million in the second quarter of 2013.
Total comparable sales, which includes comparable store sales and direct to consumer, remained flat for the second quarter of 2014 on a constant dollar basis.
Of which, comparable store sales for the second quarter of 2014 fell 5% on a constant dollar basis and direct to consumer revenue increased 30% on a constant dollar basis.
Direct to consumer revenue increased to $63.5 million, or 16.2% of total revenues in the second quarter of fiscal 2014, up from 14.3% of total revenues in the second quarter of 2013.
Gross profit for the second quarter of 2014 at lululemon athletica rose 6% year-on-year to $197.3 million, but as a percentage of net revenue declined to 50.5% from 54.0% in the second quarter of 2013.
Income from operations for quarter under review too fell 14% to $67.9 million and as a percentage of net revenue stood at 17.4% compared to 22.9% of net revenue in the second quarter of 2013.
The effective tax rate for the second quarter of fiscal 2014 came to 30.1% compared to 29.7%, a year ago.
lululemon athletica ended the second quarter of 2014 with $725.1 million in cash and cash equivalents versus $610.3 million at the end of the second quarter of 2013.
Inventory at the end of the second quarter of 2014 totalled $176.5 million against $163.0 million at the end of the second quarter of 2013. The retailer ended the quarter with 270 stores.
CEO Laurent Potdevin said, "While there is still much to be done, we are making meaningful progress on building a scalable foundation for our next phase of global growth.”
“I am excited about the collaboration between our Whitespace team and ambassadors to accelerate innovation into the future", he added.
For the third quarter of 2014, lululemon athletica expects net revenue to be in the range of $420 million to $425 million and comparable sales rise in low single 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 third quarter.
lululemon athletic said this guidance assumes 144.7 million diluted weighted-average shares outstanding and a 30.2% tax rate. (AR)
Fibre2fashion News Desk - India
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