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lululemon Q3 net revenue increases 30% to $112.9 mn

10 Dec '09

3 min read

lululemon athletica inc. announced financial results for the third quarter ended November 1, 2009.

Christine Day, lululemon's CEO stated: “Sales momentum continued to build in the third quarter as consumers responded to our distinctive product, community connections and in store guest experience. Our hard work on our supply chain initiatives and strong relationships with our suppliers allowed us to meet our growing demand.” Ms. Day continued, “We also made significant progress in improving our gross margin with a return to the 50% level, and are very pleased to deliver these results in a challenging retail environment.”

For the third quarter of 2009:

• Net revenue increased 29.7% to $112.9 million from $87.0 million for the third quarter of fiscal 2008. Net revenue from corporate-owned stores was $98.1 million, an increase of 26.4% from $77.6 million for the third quarter of fiscal 2008, and comparable-store sales increased by 10% on a constant-dollar basis compared to the third quarter of fiscal 2008.
• Gross profit for the quarter increased by 34.4% to $56.3 million, and as a percentage of net revenue gross profit increased to 49.9% for the third quarter of fiscal 2009 from 48.1% in the third quarter of fiscal 2008.
• Income from operations increased by 60.3% to $20.9 million, and as a percentage of net revenue was 18.5% compared to 15.0% of net revenue in the third quarter of fiscal 2008.
• Diluted earnings per share was $0.20 on net income of $14.1 million, compared to diluted earnings per share of $0.13 on net income of $8.8 million in the third quarter of fiscal 2008. The tax rate for the quarter was 32.8% versus 33.1% a year ago.

For the first three fiscal quarters of 2009:

• Net revenue increased 17.1% to $292.3 million from $249.6 million for the same period of fiscal 2008. Net revenue from corporate-owned stores was $256.1 million, an increase of 13.7% from $225.2 million for the same period of fiscal 2008, and comparable-store sales were even on a constant-dollar basis compared to the same period of fiscal 2008.
• Gross profit as a percentage of net revenue decreased to 46.7% from 51.1% of net revenue in the first three quarters of fiscal 2008.
• Income from operations was $45.1 million, or 15.4% of net revenue, compared to $40.5 million, or 16.2% of net revenue, in the first three quarters of fiscal 2008.
• Diluted earnings per share was $0.42 on net income of $29.8 million, compared to diluted earnings per share of $0.40 on net income of $28.4 million in the first three quarters of fiscal 2008.

The Company ended the quarter with $101.8 million in cash and cash equivalents as compared to $56.8 million at the end of fiscal 2008. Inventory at the end of the quarter totaled $52.1 million as compared to $49.1 million at the end of the third quarter in fiscal 2008.

lululemon athletica inc

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