Lululemon posts strong full year results

Lululemon Athletica Inc., for its fourth quarter ended February 3, 2019, reported net revenue of 1.2 billion dollars, an increase of 26 percent, while on a constant dollar basis, net revenue increased 27 percent. For the full fiscal year, net revenue was 3.3 billion dollars, an increase of 24 percent. The company said, on a constant dollar basis, net revenue increased 25 percent.

Commenting on the results, Calvin McDonald, Chief Executive Officer of the company, said in a statement: "Lululemon has delivered one of its strongest years yet, a result of broad-based strength across the business. We are energized to build upon our momentum and to seize the many opportunities ahead for Lululemon around the world."

Highlights of Lululemon’s Q4 and FY18 performance

The company added that total fourth quarter comparable sales increased 16 percent or 17 percent on a constant dollar basis, while comparable store sales increased 6 percent or 7 percent on a constant dollar basis. Direct to consumer net revenue in the fourth quarter increased 37 percent or 39 percent on a constant dollar basis.

Excluding net revenue from the 53rd week of fiscal 2018, total comparable sales increased 18 percent for the full year or 18 percent on a constant dollar basis. Comparable store sales increased 7 percent or 8 percent on a constant dollar basis. Direct to consumer net revenue increased 45 percent or increased 46 percent on a constant dollar basis.

Gross profit was 668.6 million dollars, an increase of 28 percent and it also increased 28 percent compared adjusted gross profit in the fourth quarter of fiscal 2017. Gross margin was 57.3 percent, an increase of 100 basis points and it increased 110 basis points compared to adjusted gross margin in the fourth quarter of fiscal 2017. Diluted earnings per share were 1.65 dollars compared to 88 cents in the fourth quarter of fiscal 2017, while adjusted diluted earnings per share were 1.85 dollars compared to 1.33 dollars for the fourth quarter of fiscal 2017.

Gross profit for the year was 1.8 billion dollars, an increase of 30 percent compared to fiscal 2017. It increased 29 percent compared to adjusted gross profit in fiscal 2017. Gross margin was 55.2 percent, an increase of 240 basis points and it increased 210 basis points compared to adjusted gross margin in fiscal 2017. Diluted earnings per share were 3.61 dollars compared to 1.90 dollars in fiscal 2017 and adjusted diluted earnings per share were 3.84 dollars compared to $2.59 in fiscal 2017.

Lululemon projects low double-digit increase in Q1 same-store sales

For the first quarter of fiscal 2019, the company expects net revenue to be in the range of 740 million dollars to 750 million dollars based on a total comparable sales increase in the low-double digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of 68 cents to 70 cents for the quarter.

For the full fiscal 2019, Lululemon expects net revenue to be in the range of 3.700 billion dollars to 3.740 billion dollars based on a total comparable sales increase in the low-double digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of 4.48 dollars to 4.55 dollars for the full year.

Picture:Facebook/Lululemon

 

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