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lululemon athletica inc. Announces Fourth Quarter and Full Year Fiscal 2010 Results
Q4 Net Revenue Increases 53% to
Q4 Diluted EPS of
Fiscal 2010 Diluted EPS increases 106% to
lululemon
For the fourth quarter ended
-
Net revenue for the quarter increased 53% to
$245.4 million from$160.6 million in the fourth quarter of fiscal 2009. - Comparable stores sales for the fourth quarter increased by 28% on a constant dollar basis.
-
Direct to consumer revenue increased 152% to
$24.6 million , or 10% of total Company sales, in the fourth quarter of fiscal 2010, from 6% of total revenue in the same period last year. -
Gross profit for the quarter increased by 66% to
$143.5 million , and as a percentage of net revenue gross profit increased to 58.5% for the quarter from 53.9% in the fourth quarter of fiscal 2009. -
Income from operations for the quarter increased by 72% to
$71.3 million , and as a percentage of net revenue was 29.1% compared to 25.8% of net revenue in the fourth quarter of fiscal 2009. -
The tax rate for the quarter was 23.5% compared to 31.4% a year ago,
after an adjustment of
$8.9 million reversing deferred tax liabilities recorded in Q1 through Q3 of fiscal 2010. This adjustment resulted from a revision to managements plans for repatriation of unremitted earnings of the Canadian operating subsidiary. Normalized for this adjustment, the tax rate for the quarter was 35.9%. -
Diluted earnings per share for the quarter were
$0.76 on net income of$54.8 million , compared to diluted earnings per share of$0.40 on net income of$28.5 million in the fourth quarter of fiscal 2009. Normalized for the tax adjustment, diluted earnings per share for the quarter were$0.64 .
For the fiscal year ended
-
Net revenue for the fiscal year increased 57% to
$711.7 million from$452.9 million in fiscal 2009. -
Comparable stores sales for fiscal 2010 increased by 30% on a constant
dollar basis, resulting in a record
$1,726 sales per square foot as atJanuary 30, 2011 . -
Direct to consumer revenue increased 214% to
$57.3 million , or 8% of total Company sales, in fiscal 2010, from 4% of total revenue in fiscal 2009. -
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
Updated Outlook
For the first quarter of fiscal 2011, we expect net revenue to be in the
range of
For fiscal 2011, we expect net revenue to be in the range of
Conference Call Information
A conference call to discuss fiscal 2010 results is scheduled for today,
About lululemon athletica inc.
Non-GAAP Financial Measure
Constant-dollar net revenue changes, which exclude the impact of changes in foreign exchange rates, is not a United States Generally Accepted Accounting Principle ("GAAP") performance measure. We provide constant-dollar net revenue changes because we use the measure to understand the underlying growth rate of revenue excluding the impact on a quarter-by-quarter basis of changes in foreign exchange rates, which are not under management's direct control. We believe that disclosing net revenue changes on a constant-dollar basis is useful to investors because it enables them to better understand the level of growth of our business.
Forward-Looking Statements:
This press release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934 that involve risks, uncertainties
and assumptions, such as statements regarding our future financial
condition or results of operations, our prospects and strategies for
future growth, the development and introduction of new products, and the
implementation of our marketing and branding strategies. In many cases,
you can identify forward-looking statements by terms such as "may,"
"will," "should," "expects," "plans," "anticipates," "outlook,"
"believes," "intends," "estimates," "predicts," "potential" or the
negative of these terms or other comparable terminology. These
forward-looking statements are based on management's current
expectations but they involve a number of risks and uncertainties.
Actual results and the timing of events could differ materially from
those anticipated in the forward-looking statements as a result of risks
and uncertainties, which include, without limitation: the possibility
that we may not be able to manage operations at our current size or
manage growth effectively; risks that consumer spending may continue to
decline and that U.S. and global macroeconomic conditions may worsen;
risks that the cost of raw materials could increase our cost of goods
sold and that we will not be successful in our efforts to protect our
business from the volatility of the market price for cotton and other
raw materials; risks that increasing labor costs and other factors
associated with the manufacture of our products in
lululemon athletica inc. |
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Thirteen |
Thirteen |
Fifty-Two |
Fifty-Two |
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Net revenue | $245,399 | $160,606 | $711,704 | $452,898 | ||||||||||||
Costs of goods sold | 101,939 | 74,046 | 316,757 | 229,812 | ||||||||||||
Gross profit | 143,460 | 86,560 | 394,947 | 223,086 | ||||||||||||
As a percent of net revenue | 58.5 | % | 53.9 | % | 55.5 | % | 49.3 | % | ||||||||
Selling, general and administrative expenses | 71,483 | 44,929 | 212,784 | 136,161 | ||||||||||||
As a percent of net revenue | 29.1 | % | 28.0 | % | 29.9 | % | 30.1 | % | ||||||||
Provision for impairment and lease exit costs | 679 | 196 | 1,772 | 379 | ||||||||||||
Income from operations |
71,298 | 41,435 | 180,391 | 86,546 | ||||||||||||
As a percent of net revenue | 29.1 | % | 25.8 | % | 25.3 | % | 19.1 | % | ||||||||
Other income (expense), net | 542 | 66 | 2,886 | 164 | ||||||||||||
Income before provision for income taxes | 71,840 | 41,501 | 183,277 | 86,710 | ||||||||||||
Provision for income taxes | 16,873 | 13,050 | 61,080 | 28,429 | ||||||||||||
Net Income | 54,967 | 28,451 | 122,197 | 58,281 | ||||||||||||
Net income attributable to non-controlling interest |
201 | - | 350 | - | ||||||||||||
Net income attributable to lululemon athletica inc. | $54,766 | $28,451 | $121,847 | $58,281 | ||||||||||||
Basic earnings per share | $0.77 | $0.40 | $1.72 | $0.83 | ||||||||||||
Diluted earnings per share | $0.76 | $0.40 | $1.69 | $0.82 | ||||||||||||
Basic weighted-average shares outstanding | 71,087 | 70,400 | 70,860 | 70,251 | ||||||||||||
Diluted weighted-average shares outstanding | 72,181 | 71,308 | 71,929 | 70,949 | ||||||||||||
lululemon athletica inc. |
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January 30, |
January 31, |
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ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents |
$316,286 |
|
$159,573 |
|
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Inventories | 57,469 | 44,070 | |||||||||
Other current assets | 15,524 | 12,767 | |||||||||
Total current assets | 389,279 | 216,410 | |||||||||
Property and equipment, net | 70,954 | 61,591 | |||||||||
Intangible assets, net | 27,112 | 8,050 | |||||||||
Deferred income taxes and other assets | 11,957 | 21,207 | |||||||||
Total assets | $499,302 | $307,258 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $6,659 | $11,028 | |||||||||
Other current liabilities | 60,306 | 39,908 | |||||||||
Income taxes payable | 18,399 | 7,742 | |||||||||
Total current liabilities | 85,364 | 58,678 | |||||||||
Deferred income taxes and other non-current liabilities | 19,645 | 15,472 | |||||||||
Stockholders' equity | 394,293 | 233,108 | |||||||||
Total liabilities and stockholders' equity | $499,302 | $307,258 | |||||||||
lululemon athletica inc. |
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Fifty-Two Weeks Ended |
Fifty-Two Weeks Ended |
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Cash flows from operating activities | |||||||||
Net income | $122,197 | $58,281 | |||||||
Items not affecting cash | 33,832 | 28,889 | |||||||
Other, including net changes in other non-cash balances | 23,966 | 30,790 | |||||||
Net cash provided by operating activities | 179,995 | 117,960 | |||||||
Net cash used in investing activities | (42,839 | ) | (16,307 | ) | |||||
Net cash provided by financing activities | 13,699 | (2,649 | ) | ||||||
Effect of exchange rate changes on cash | 5,858 | 3,772 | |||||||
Increase in cash and cash equivalents | 156,713 | 102,776 | |||||||
Cash and cash equivalents, beginning of period | $159,573 | $56,797 | |||||||
Cash and cash equivalents, end of period | $316,286 | $159,573 | |||||||
lululemon athletica inc. |
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Number of |
Number of |
Number of |
Number of |
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1st Quarter |
110 |
|
4 |
|
0 |
114 |
|
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2nd Quarter | 114 | 12 | 0 | 126 | |||||||||||||
3rd Quarter | 126 | 4 | 0 | 130 | |||||||||||||
4th Quarter | 130 | 5 | 2 | 133 | |||||||||||||
Total Gross |
Gross Square |
Gross Square |
Total Gross |
||||||||||||||
1st Quarter | 316 | 9 | 0 | 325 | |||||||||||||
2nd Quarter | 325 | 25 | 0 | 350 | |||||||||||||
3rd Quarter | 350 | 14 | 0 | 364 | |||||||||||||
4th Quarter | 364 | 13 | (3 | ) | 374 | ||||||||||||
1 Store count and square footage summary includes corporate-owned stores which are branded lululemon athletica and ivivva athletica. 2 Number of stores opened during fiscal 2010 are branded lululemon athletica and include nine locations repurchased from our Australian franchise operator and one reacquired franchise in Canada, in the second quarter. 3 Gross square feet added during the quarter includes net square foot additions for corporate-owned stores which have been renovated or relocated in the quarter. |
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lululemon athletica inc. |
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Thirteen Weeks |
Thirteen Weeks |
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% Change | % Change | |||||||
Comparable-store sales (GAAP) | 32% | 42% | ||||||
Increase (decrease) due to foreign exchange rate changes | (4)% | (13)% | ||||||
Comparable-store sales in constant dollars | 28% | 29% | ||||||
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