Lululemon Athletica Inc. reported that sales in the first quarter vaulted 52.8 percent to $285.7 million. Comparable stores sales for the first quarter increased by 25 percent on a constant dollar basis. Net earnings jumped 39.5 percent to $46.6 million, or 32 cents a share, from $33.4 million, or 23 cents, in the first quarter of fiscal 2011.

In reporting fourth-quarter results on March 22, the yoga-themed retailer had projected first-quarter revenue to be in the range of $265 million to $270 million based on a comparable-store sales percentage increase in the low 20s on a constant-dollar basis. Diluted earnings per share were targeted to be in the range of 28 cents to 29 cents for the quarter.

Other highlights of the 2012 first quarter:

  • Direct to consumer revenue increased 179 percent to $38.4 million, or 13.5 percent of total Company revenues, in the first quarter of fiscal 2012, an increase from 7.4 percent of total Company revenues in the first quarter of fiscal 2011.
  • Gross profit for the quarter increased 43 percent to $157.3 million, and as a percentage of net revenue gross profit decreased to 55.0 percent for the quarter from 58.7 percent in the first quarter of fiscal 2011.
  • Income from operations for the quarter increased 41 percent to $73.1 million, and as a percentage of net revenue was 25.6 percent compared to 27.7 percent of net revenue in the first quarter of fiscal 2011.
  • The tax rate for the quarter was 36.5 percent compared to 36.3 percent a year ago.

The company ended the first quarter of fiscal 2012 with $424.3 million in cash and cash equivalents compared to $260.9 million at the end of the first quarter of fiscal 2011. Inventory at the end of the first quarter of fiscal 2012 totaled $107.7 million compared to $64.4 million at the end of the first quarter of fiscal 2011. The company ended the quarter with 180 stores in North America, Australia and New Zealand.

Christine Day, Lululemon’s CEO stated: “Our strategy to increase inventory levels led to strong revenue growth and earnings performance in the first quarter as our guests responded well to our spring styles and colors.”

Updated Outlook

For the second quarter of fiscal 2012, Lululemon expects net revenue to be in the range of $273 million to $278 million based on a comparable-store sales percentage increase in the low double digits on a constant-dollar basis. Diluted earnings per share are expected to be in the range of 28 cents to 30 cents for the quarter. This assumes 145.7 million diluted weighted-average shares outstanding and a 36.5 percent tax rate.

For the full fiscal 2012, Lululemon now expects net revenue to be in the range of $1,320 million to $1,340 million and diluted earnings per share are expected to be in the range of $1.55 to $1.60 for the full year.

Previously, Lululemon projected net revenue to be in the range of $1.3

billion to $1.325 billion and diluted EPS to

be in the range of $1.50 to $1.57 for the full year.