Lululemon athletica inc resumed its meteoric sales growth in the fourth quarter ended Jan. 31, posting comp store gains of 29%, the Canadian purveyor of yoga inspired clothing said.  The company said it expected comps to grow in the 20% range in the current quarter.


The company repoted net revenue for the fourth quarter ended Jan. 31 increased 54.5% to $160.6 million from $103.9 million in the fourth quarter of fiscal 2008. Net revenue from corporate-owned stores was $137.4 million for the quarter, an increase of 52.2% from $90.3 million in the fourth quarter of fiscal 2008, and comparable-store sales increased by 29% on a constant-dollar basis.


Gross profit for the quarter increased by 67.6% to $86.6 million, and as a percentage of net revenue gross profit increased to 53.9% for the quarter from 49.7% in the fourth quarter of fiscal 2008.


 Income from operations rose by 158.3% to $41.4 million, and as a percentage of net revenue was 25.8% compared to 15.4% of net revenue in quarter, which included a $4.4 million (4 cents per share) asset impairment charge related to store assets and lease exit costs.
Diluted earnings per share for the quarter was 40 cents on net income of $28.5 million, compared to diluted earnings per share of 16 cents on net income of $10.9 million in the fourth quarter of fiscal 2008. The tax rate for the quarter was 31.4% versus 32.7% a year ago.


For the fiscal year ended Jan. 31, 2010 net revenue rose 28.1% to $452.9 million from $353.5 million in fiscal 2008. Net revenue from corporate-owned stores was $393.5 million, an increase of 24.7% from $315.5 million in fiscal 2008, and comparable-store sales increased by 9% on a constant-dollar basis.


Gross profit for the fiscal year as a percentage of net revenue decreased to 49.3% from 50.7% of net revenue in fiscal 2008.


 Income from operations for the fiscal year increased by 53.0% to $86.5 million, and as a percentage of net revenue was 19.1% compared to 16.0% of net revenue in the fourth quarter of fiscal 2008, which included a $4.4 million asset impairment charge related to store assets and lease exit costs.


Diluted earnings per share for the fiscal year was 82 cents on net income of $58.3 million, compared to diluted earnings per share of 55 cents on net income of $39.4 million in fiscal 2008.


The company ended fiscal 2009 with $159.6 million in cash and cash equivalents compared to $56.8 million at the end of fiscal 2008. Inventory at the end of fiscal 2009 totaled $44.1 million compared to $52.1 million at the end of fiscal 2008.


“We are very pleased with the growing sales momentum in our business which has accelerated as the economy has improved and with some of our key initiatives which have taken hold, such as expanding our running line, elevated product to give more value to our customers, and our e-commerce launch, said Christine Day, lululemon’s CEO. Our 29% comparable-store sales increase reflects the strength of the lululemon brand driven by our quality, design, product innovation and unique positioning.”


Updated Outlook
For the first quarter of fiscal 2010, we expect net revenue to be in the range of $125 million to $130 million based on a comparable-store sales increase in the upper 20% range on a constant-dollar basis. Diluted earnings per share are expected to be in the range of 18 to 20 cents for the quarter. This assumes a tax rate of 35% and 71.7 million diluted weighted-average shares outstanding.
For fiscal 2010, we expect net revenue to be in the range of $570 million to $585 million and diluted earnings per share are expected to be in the range of $1.00 to $1.05 for the full year. This assumes a tax rate of 35% and 72.5 million diluted weighted-average shares outstanding.

lululemon athletica inc.
Condensed Consolidated Statements of Operations
Expressed in thousands, except per share amounts

                                               Thirteen     Thirteen     Fifty-Two    Fifty-Two
                                               Weeks Ended  Weeks Ended  Weeks Ended  Weeks Ended
                                               January 31,  February 1,  January 31,  February 1,
                                               2010         2009         2010         2009
                                               (unaudited)  (unaudited)
Net revenue                                    $160,606     $103,921     $452,898     $353,488
Costs of goods sold                            74,046       52,261       229,812      174,421
Gross profit                                   86,560       51,660       223,086      179,067
As a percent of net revenue                    53.9%        49.7%        49.3%        50.7%
Selling, general and administrative expenses   44,929       31,214       136,161      118,098
As a percent of net revenue                    28.0%        30.0%        30.1%        33.4%
Provision for impairment and lease exit costs  196          4,405        379          4,405
Income from operations                         41,435       16,041       86,546       56,564
As a percent of net revenue                    25.8%        15.4%        19.1%        16.02%
Other income, net                              66           210          164          821
Income before income taxes                     41,501       16,251       86,710       57,385
Provision for income taxes                     13,050       5,313        28,429       16,884
Net income from continuing operations          28,451       10,938       58,281       40,501
Net loss from discontinued operations          —           —           —           (1,138)
Net income                                     $28,451      $10,938      $58,281      $39,363
Basic earnings (loss) per share:
Continuing operations                          $0.40        $0.16        $0.83        $0.59
Discontinued operations                        —           —           —           (0.02)
Net basic earnings per share                   $0.40        $0.16        $0.83        $0.57
Diluted earnings (loss) per share:
Continuing operations                          $0.40        $0.16        $0.82        $0.57
Discontinued operations                        —           —           —           (0.02)
Net diluted earnings per share                 $0.40        $0.16        $0.82        $0.55
Weighted-average outstanding:
Basic                                          70,400       68,207       70,251       68,711
Diluted                                        71,308       68,523       70,949       70,942