Lululemon Athletica reports rise in revenue for FY14

Net revenue at Lululemon Athletica, for the fiscal year increased 13 percent to 1.8 billion dollars from 1.6 billion dollars in fiscal 2013. Total comparable sales increased by 3 percent for fiscal 2014 on a constant dollar basis. For the fourth quarter ended February 1, 2015, its net revenue increased 16 percent to 602.5 million dollars from 521 million dollars in the fourth quarter of fiscal 2013. Total comparable sales, which includes comparable store sales and direct to consumer, increased 8 percent for the fourth quarter on a constant dollar basis.

Comparable store sales for the fourth quarter increased by 5 percent on a constant dollar basis and direct to consumer net revenue increased 20 percent on a constant dollar basis. Direct to consumer net revenue increased 17 percent to 114.5 million dollars, or 19 percent of total company net revenue, an increase from 18.8 percent of total company net revenue in the fourth quarter of fiscal 2013.

Gross profit for the quarter increased by 11 percent to 310 million dollars, and as a percentage of net revenue gross profit was 51.5 percent for the quarter compared to 53.5 percent in the fourth quarter of fiscal 2013. Income from operations for the quarter increased by 2 percent to 157.2 million dollars, and as a percentage of net revenue was 26.1 percent compared to 29.6 percent of net revenue in the fourth quarter of fiscal 2013. Diluted earnings per share for the quarter were 0.78 dollars on net income of 110.9 million dollars, compared to diluted earnings per share of 0.75 dollars on net income of 109.7 million dollars in the fourth quarter of fiscal 2013.

Comparable store sales decreased 1 percent on a constant dollar basis for fiscal 2014 and direct to consumer net revenue increased 24 percent on a constant dollar basis. Direct to consumer net revenue increased 22 percent to 321.2 million dollars, or 17.9 percent of total company net revenue in fiscal 2014, an increase from 16.5 percent of total company net revenue in fiscal 2013. Gross profit increased by 9 percent and as a percentage of net revenue was 50.9 percent compared to 52.8 percent in fiscal 2013.

Commenting on the results, Laurent Potdevin, lululemon's CEO, said, "Our solid performance in the fourth quarter builds on the momentum that began in the third quarter. 2014 was a critical year when we strengthened our leadership team and made important investments in our product pipeline, guest experience, brand, and community engagement. In 2015, we expect to substantially complete this foundational work”

For the first quarter of fiscal 2015, the company expects net revenue to be in the range of 413 million dollars to 418 million dollars based on a total comparable sales increase in the low single digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of 0.31 dollars to 0.33 dollars for the quarter. For the full fiscal 2015, net revenue is expected to be in the range of 1.970 billion dollars to 2.020 billion dollars based on a total comparable sales increase in the mid-single digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of 1.85 dollars to 1.90 dollars for the full year.