Lululemon Athletica posts 14% rise in revenue in Q3 FY17

The company's gross profit was $322.0 million, an increase of 16 per cent compared to the third quarter of fiscal 2016. Adjusted gross profit was $323.1 million, an increase of 16 per cent. For the reported period, gross margin was 52 per cent and adjusted gross margin was recorded at 52.2 per cent.

The company ended the third quarter of fiscal 2017 with $650.1 million in cash and cash equivalents compared to $480.4 million at the end of the third quarter of fiscal 2016. Inventories at the end of the third quarter of fiscal 2017 increased 9 per cent to $396.9 million compared to $364.5 million at the end of the third quarter of fiscal 2016. It ended the quarter with 388 stores.

"Our teams powerfully delivered robust results across both store and digital channels this quarter, driving a further acceleration in our business. The strength of our third quarter earnings supports our unique position as the global brand defining an active, mindful lifestyle," said Laurent Potdevin, CEO, lululemon.

"As we start the holiday season, I'm energised by our momentum and we are increasing guidance to reflect this performance. I'm grateful for the enthusiasm I see every day across our collective as we remain on our path to delivering $4 billion in revenue in 2020," Potdevin added.

For the fourth quarter of fiscal 2017, the company expects net revenue to be in the range of $870 to $885 million based on a total comparable sales increase in the mid-single digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of $1.18 to $1.21 for the quarter.

Fibre2Fashion News Desk – India