Lululemon athletica inc. said net revenue for the thirteen weeks ended May 3, 2009 increased 6% to $81.7 million from $77.0 million for the first quarter of fiscal 2008. Net revenue from corporate-owned stores was $72.9 million, an increase of 5% from $69.4 million for the first quarter of fiscal 2008, with comparable-store sales decline of 8% on a constant-dollar basis compared to the first quarter of 2008. Gross profit as a percentage of net revenue decreased to 42.8% from 53.4% of net revenue in the first quarter of fiscal 2008.
The company ended the quarter with $59.3 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 $44.6 million as compared to $52.1 million at the end of fiscal 2008.
Christine Day, lululemon's CEO stated: “We continue to manage the long-term brand expansion while delivering against our short-term commitments. Given the troubled outlook for the economy in early 2009 when we began the quarter, we are pleased with the current pace of our business and our ability to continue to bring our customers through our doors to make full price purchases. We remain committed to the quality of our products and our ongoing innovation.”
For the second quarter of fiscal 2009 we expect comparable-store sales decline in the middle-single digits on a constant-dollar basis compared to the second quarter of 2008. We anticipate reported net revenue to be in the range of $85 million to $90 million for the quarter, and earnings per share in the range of 8 cents to 9 cents for the quarter. This assumes a tax rate of 34% and 70.5 million diluted weighted average shares outstanding.
lululemon athletica inc. Condensed Consolidated Statements of Operations Expressed in thousands, except per share amounts (Unaudited) | ||||
Thirteen Weeks Ended | Thirteen Weeks Ended | |||
| May 3, 2009 | May 4, 2008 | |||
| Net revenue | $81,680 | $77,030 | ||
| Costs of goods sold | 46,731 | 35,929 | ||
| Gross profit | 34,949 | 41,101 | ||
| As a percent of revenues | 42.8% | 53.4% | ||
| Selling, general and administrative expenses | 25,096 | 29,154 | ||
| As a percent of revenues | 30.7% | 37.8% | ||
| Income from operations | 9,853 | 11,947 | ||
| As a percent of revenues | 12.1% | 15.5% | ||
| Other income (expense), net | 78 | 277 | ||
| Income before income taxes | 9,931 | 12,224 | ||
| Provision for income tax | 3,413 | 3,753 | ||
| Net income from continuing operations | 6,518 | 8,471 | ||
| Discontinued operations | — | 5 | ||
| Net income | $6,518 | $8,476 | ||
| Earnings per share, continuing and discontinued operations: | ||||
| Basic | $0.09 | $0.13 | ||
| Diluted | $0.09 | $0.12 | ||
| Weighted-average number of shares outstanding: | ||||
| Basic | 70,131 | 67,678 | ||
| Diluted | 70,331 | 71,651 | ||
