Lululemon athletica inc. net revenue for the quarter ended Feb. 1, 2009 was $103.9 million, a 0.1% decrease from net revenue of $104.0 million in the fourth quarter of fiscal 2007. Net revenue from corporate-owned stores was $90.3 million, a decrease of 1.5% from $91.7 million for the fourth quarter of fiscal 2007, with a comparable-store sales decline of 8% on a constant-dollar basis compared to the fourth quarter of fiscal 2007.


Gross profit as a percentage of net revenue was 49.7% as compared to 54.4% in the fourth quarter of fiscal 2007. Income from operations was $16.0 million, or 15.4% of net revenue, compared to $22.3 million, or 21.4% of net revenue, in the fourth quarter of fiscal 2007. Results include a $4.4 million (4 cents per share) asset impairment charge related to store assets and lease exit costs.


Diluted earnings per share was 16 cents on net income of $10.9 million, including the 4 cents asset impairment charge. This compares to diluted earnings per share of 21 cents on net income of $14.6 million in the fourth quarter of fiscal 2007.

For the fifty-two weeks ended Feb. 1, 2009, net revenue increased 30.9% to $353.5 million from $269.9 million in fiscal 2007. Net revenue from corporate-owned stores was $315.5 million, an increase of 31.2% from $240.4 million in fiscal 2007, with comparable-store sales increasing 3% on a constant-dollar basis.


Gross profit as a percentage of net revenue was 50.7% compared to 53.7% in fiscal 2007. Income from operations was $56.6 million, or 16.0% of net revenues, compared to $51.6 million, or 19.1% of net revenues, in fiscal 2007.


Diluted earnings per share was 55 cents on net income of $39.4 million in fiscal 2008, compared to diluted earnings per share of 45 cents on net income of $30.8 million for fiscal 2007.

The company ended fiscal 2008 with $56.8 million in cash and cash equivalents as compared to $52.5 million at the end of fiscal 2007. Inventory at year-end fiscal 2008 totaled $52.1 million as compared to $37.9 million at the end of fiscal 2007. The increase was primarily due to timing of in-transit inventory at year end which was minimal in the prior year.


CEO Christine Day commented, “We had a solid finish to fiscal 2008 and our financial results were in line with the guidance we provided. We are pleased with the progress we made on our real estate, e-commerce, and operational initiatives for the year. Looking at 2009, we will continue to be focused on selective use of capital and generating positive cash flow as we position ourselves to respond quickly to changes in the macro-environment. We are confident that we will emerge from these challenging conditions well positioned for long term growth.”


Until there is additional clarity on consumer spending in the second half of the year, the company is limiting its guidance to the current quarter. For the first quarter of fiscal 2009, lululemon said it expects a same-store sales decline in the low double digits on a constant-dollar basis compared to the first quarter of 2008. The company anticipates reported net revenue to be in the range of $70 million to $75 million for the quarter, and earnings per share is expected to range from 7 cents to 8 cents for the quarter. This assumes a tax rate of 34% and 70.1 million diluted weighted average shares outstanding.


 

















































































































































































































































































































































Share This

lululemon athletica inc.


Consolidated Statements of Operations


Expressed in thousands of dollars except share and per share amounts


 

 


 

 


 

 


 

 


 


 

 

Thirteen Weeks Ended


 

Thirteen Weeks Ended


 

Fifty-Two Weeks Ended


 

Fifty-Two Weeks Ended


February 1,


2009


February 3,


2008


February 1,


2009


 

February 3,


2008


 

 

(unaudited)


 

(unaudited)


 

 

 

 


Net revenue


 

$103,921


 

 

$103,993


 

 

$353,488


 

 

$269,942


 


 

 

 

 

 

 

 

 

 


Costs of goods sold


 

52,261


 


 

47,413


 


 

174,421


 


 

125,015


 


Gross profit


 

51,660


 

 

56,580


 

 

179,067


 

 

144,927


 


As a percent of net revenues


 

49.7


%


 

54.4


%


 

50.7


%


 

53.7


%


 

 

 

 

 

 

 

 

 


Selling, general and administrative expenses


 

31,214


 

 

34,325


 

 

118,098


 

 

93,376


 


As a percent of net revenues


 

30.0


%


 

33.0


%


 

33.4


%


 

34.6


%


Provision for impairment and lease exit costs


 

4,405


 


 

—


 


 

4,405


 


 

—


 


Income from operations


 

16,041


 

 

22,255


 

 

56,564


 

 

51,551


 


As a percent of net revenues


 

15.4


%


 

21.4


%


 

16.0


%


 

19.1


%


 

 

 

 

 

 

 

 

 


Other income (expense), net


 

210


 


 

433


 


 

821


 


 

1,029


 


 

 

 

 

 

 

 

 

 


Income before provision for income taxes


 

16,251


 

 

22,688


 

 

57,385


 

 

52,580


 


 

 

 

 

 

 

 

 

 


Provision for income taxes


 

5,313


 


 

7,454


 


 

16,884


 


 

20,464


 


 

 

 

 

 

 

 

 

 


Net income from continuing operations


 

$10,938


 

 

$15,234


 

 

$40,501


 

 

$32,116


 


 

 

 

 

 

 

 

 

 


Discontinued operations


 

—


 


 

(625


)


 

(1,138


)


 

(1,273


)


 

 

 

 

 

 

 

 

 


Net income


 

$10, 938


 


 

$14,609


 


 

$39, 363


 


 

$30,843