Canadian lululemon athletica inc. announces Fourth Quarter and Full Year Fiscal 2015 results

Canadian lululemon athletica inc. announces Fourth Quarter and Full Year Fiscal 2015 results

Laurent Potdevin, lululemon’s CEO, stated: “I’m very pleased with our strong finish to the year with positive momentum across all channels. The fourth quarter results are a reflection of our ability to deliver a truly unique experience to our guests, led, as always, by our outstanding store educators.”

Mr. Potdevin continued: “In 2015, we made bold moves across the organization, elevating design and innovation and developing our infrastructure to position us for the future. As I look forward to 2016 and beyond, I am excited and confident that we have the right team in place to execute on our long term strategies.”

lululemon 1For the fourth quarter ended January 31, 2016:

•          Net revenue for the quarter increased 17 % to USD 704.3 million from USD 602.5 million in the fourth quarter of fiscal 2014.

•          Total comparable sales, which includes comparable store sales and direct to consumer, increased by 11 % for the fourth quarter on a constant dollar basis.

•          Comparable store sales for the fourth quarter increased by 5 % on a constant dollar basis and direct to consumer net revenue increased 33% on a constant dollar basis.

•          Direct to consumer net revenue increased 28% to USD 146.3 million, or 20.8 % of total Company net revenue, in the fourth quarter of fiscal 2015, an increase from 19.0 % of total Company net revenue in the fourth quarter of fiscal 2014.

•          Gross profit for the quarter increased by 14 % to USD 354.5 million, and as a percentage of net revenue gross profit was 50.3 % for the quarter compared to 51.5 % in the fourth quarter of fiscal 2014.

•          Income from operations for the quarter increased by 6% to USD 166.3 million, and as a percentage of net revenue was 23.6 % compared to 26.1 % of net revenue in the fourth quarter of fiscal 2014.

•          Income tax expense for the fourth quarter of fiscal 2015 was USD 49.8 million compared to USD 48.1 million in the fourth quarter of fiscal 2014. The effective tax rate for the quarter was 29.8 % compared to 30.3 % in the fourth quarter of fiscal 2014.

•          Diluted earnings per share for the fourth quarter of fiscal 2015 were USD 0.85 compared to USD 0.78 in the fourth quarter of fiscal 2014.

•          During the fourth quarter of fiscal 2015, the Company repurchased 2.1 million shares of the Company’s common stock at an average cost of USD 49.52 per share.

lululemon 2For the fiscal year ended January 31, 2016:

•          Net revenue for the fiscal year increased 15 % to USD 2.1 billion from USD1.8 billion in fiscal 2014.

•          Total comparable sales increased by 10 % for fiscal 2015 on a constant dollar basis.

•          Comparable store sales increased 4 % on a constant dollar basis for fiscal 2015 and direct to consumer net revenue increased 30 % on a constant dollar basis. Company-operated stores which have been open for at least one year averaged sales of USD 1541 per square foot.

•          Direct to consumer net revenue increased 25 % to USD 401.5 million, or 19.5 % of total Company net revenue in fiscal 2015, an increase from 17.9 % of total Company net revenue in fiscal 2014.

•          Gross profit for fiscal 2015 increased by 9 % to USD 997.2 million, from USD 914.2 million in fiscal 2014, and as a percentage of net revenue was 48.4 % compared to 50.9 % in fiscal 2014.

•          Income from operations for fiscal 2015 decreased by 2 % to USD 369.1 million, from USD 376.0 million in fiscal 2014. As a percentage of net revenue, income from operations decreased to 17.9 % compared to 20.9 % of net revenue in fiscal 2014.

•          Income tax expense for fiscal 2015 was USD 102.4 million, which includes a net income tax recovery of USD 7.4 million related to the Company’s transfer pricing arrangements and estimated taxes associated with the repatriation of foreign earnings. The effective tax rate was 27.8 % for fiscal 2015 compared to 37.6 % for fiscal 2014. The effective tax rate excluding certain tax and related interest adjustments would have been 29.5% for fiscal 2015 compared to 28.8 % for fiscal 2014.

•          Diluted earnings per share for fiscal 2015 were USD 1.89 compared to USD 1.66 inlululemon 3fiscal 2014. Excluding the above tax and related interest adjustments, diluted earnings per share were USD 1.86 for fiscal 2015 compared to USD 1.89 in fiscal 2014.

•          During fiscal 2015, the Company repurchased 5.0 million shares of the Company’s common stock at an average cost of USD 55.27 per share.

The Company ended fiscal 2015 with USD 501.5 million in cash and cash equivalents compared to USD 664.5 million at the end of fiscal 2014. Inventory at the end of fiscal 2015 was USD 284.0 million compared to USD 208.1 million at the end of fiscal 2014. The Company ended the year with 363 stores.

Outlook

For the first quarter of fiscal 2016, the company expects net revenue to be in the range of USD 483 million to USD 488 million 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 USD 0.28 to USD 0.30 for the quarter. This guidance assumes 138.0 million diluted weighted-average shares outstanding and a 30.2 % tax rate. The guidance does not reflect potential future repurchases of the Company’s shares.

For the full fiscal 2016, we expect net revenue to be in the range of USD 2.285 billion to USD 2.335 billion 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 USD 2.05 to USD 2.15 for the full year. This guidance assumes 138.0 million diluted weighted-average shares outstanding and a 30.2 % tax rate. The guidance does not reflect potential future repurchases of the Company’s shares.

www.lululemon.com


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