VANCOUVER, British Columbia--(BUSINESS WIRE)--
lululemon athletica inc. (NASDAQ: LULU; TSX: LLL) today announced
financial results for the thirteen weeks ended May 4, 2008.
For the thirteen weeks ended May 4, 2008:
-- Net revenue increased 75% to $78.2 million from $44.8 million
for the first quarter of fiscal 2007. Net revenue from
corporate-owned stores was $70.6 million, an increase of 86%
from $38.0 million for the first quarter of fiscal 2007, with
comparable-store sales increasing 28% compared to the first
quarter of fiscal 2007, or 15% on a constant-dollar basis.
-- Gross profit as a percentage of net revenue increased 260
basis points to 53.1% of net revenue from 50.5% of net revenue
in the first quarter of fiscal 2007.
-- Income from operations was $11.7 million, or 15.0% of net
revenue, compared to $6.8 million, or 15.3% of net revenue, in
the first quarter of fiscal 2007.
-- Diluted earnings per share were $0.12 on net income of $8.5
million, compared to diluted earnings per share of $0.05 on
net income of $3.5 million in the first quarter of fiscal
2007.
Robert Meers, lululemon's CEO stated: "We are pleased with the
continued momentum of our business through the first quarter despite
the overall consumer environment. The investments into our systems and
people position us well to gain market share as we continue to expand
our store base in the United States and migrate into ecommerce next
year." Mr. Meers continued: "For me, it is gratifying to know that an
extremely strong foundation is in place at lululemon, and a talented
new CEO will be leading the organization into the future starting this
second quarter."
Christine Day, lululemon's CEO designate stated: "Along with our
strong results in the first quarter, we were able to make some
important senior level management hires and successfully implement the
first phase of our systems upgrade. We also plan to make additional
strategic investments in our long term growth that will result in a
slightly reduced EPS outlook for fiscal 2008. That said, we will
continue to strive to deliver exceptional results, attracting new
guests to our brand through our unique culture, store experience and
distinctive community-based approach to retail. I am extremely
encouraged about our long term growth and future."
Updated Guidance
Based on the results from our first fiscal quarter and our outlook
for the balance of the year, the Company now expects diluted earnings
per share for fiscal 2008 to be $0.68-$0.71 versus previous guidance
of $0.70-$0.72.
This guidance continues to be based on anticipated comparable
store sales growth of low teens; or high single digits on a constant
dollar basis, and 35 planned new store openings in North America. Due
to strong sales at new stores not in the comp base, coupled with an
earlier than anticipated new store opening calendar for this year, we
are raising revenue guidance to between $380 million and $385 million
versus previous guidance of $370 million to $375 million. The lower
earnings outlook is primarily a result of incremental hires and other
strategic initiatives.
The Company expects an effective tax rate in the low 30% range for
the full year and anticipates diluted weighted average shares
outstanding of 71.7 million for 2008. Fiscal 2008 earnings guidance
includes a charge of approximately $0.02 per share resulting from the
Company's planned closure of its four stores currently operating in
Japan.
The Company's long-term growth targets continue to be net revenue
growth of approximately 25% and diluted EPS growth in excess of 25%.
Conference Call Information
A conference call to discuss first quarter results is scheduled
for today, June 2, 2008, at 4:30 PM Eastern Time. Investors interested
in participating in the call are invited to dial (877) 440-5788
approximately ten minutes prior to the start of the call.
About lululemon athletica inc.
lululemon athletica (NASDAQ: LULU; TSX: LLL) is a yoga-inspired
athletic apparel company that creates components for people to live
longer, healthier and more fun lives. By producing products that help
keep people active and stress free, lululemon believes that the world
will be a better place. Setting the bar in technical fabrics and
functional designs, lululemon works with yogis and athletes in local
communities for continuous research and product feedback. For more
information, http://www.lululemon.com.
Forward-Looking Statements:
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 that involve risks,
uncertainties and assumptions, such as statements regarding our future
financial condition, financial results or results of operations, our
prospects and strategies for future growth, both in North America and
internationally, the development and introduction of new products, and
the implementation of our marketing and branding strategies. In many
cases, you can identify forward-looking statements by terms such as
"may," "will," "should," "expects," "plans," "anticipates,"
"believes," "intends," "estimates," "predicts," "potential" or the
negative of these terms or other comparable terminology. These
forward-looking statements are based on management's current
expectations but they involve a number of risks and uncertainties.
Actual results and the timing of events could differ materially from
those anticipated in the forward-looking statements as a result of
risks and uncertainties, which include, without limitation: the
possibility that we may not be able to manage operations at our
current size or manage growth effectively; the possibility that we may
not be able to identify suitable locations to open new stores or
attract customers to our stores; the possibility that we may not be
able to successfully expand in the United States or in other markets,
or expand into new markets; the possibility that we may not be able to
finance our growth and maintain sufficient levels of cash flow; the
possibility that a general economic slowdown could adversely affect
our results of operations and growth plans; increasing competition,
which may cause us to reduce the prices of our products or to increase
significantly our marketing efforts to avoid losing market share; the
possibility that we may not be able to effectively market and maintain
a positive brand image; the possibility that we may not be able to
continually innovate and provide our consumers with improved products;
and other risk factors detailed in our filings with the Securities and
Exchange Commission, including the risk factors contained in our
fiscal 2007 Annual Report on Form 10-K filed with the SEC and other
filings we make with the SEC. Our filings with the SEC are available
at http://www.sec.gov. You are urged to consider these factors
carefully in evaluating the forward-looking statements herein and are
cautioned not to place undue reliance on such forward-looking
statements, which are qualified in their entirety by this cautionary
statement. The forward-looking statements made herein speak only as of
the date of this press release and the Company undertakes no
obligation to publicly update such forward-looking statements to
reflect subsequent events or circumstances.
Exhibit (1)
lululemon athletica inc.
Condensed Consolidated Statements of Operations
Expressed in thousands of dollars except per share amounts
(Unaudited)
Thirteen Weeks Three Months
Ended Ended
May 4, 2008 April 30, 2007
Net revenue $78,167 $44,789
Costs of goods sold 36,645 22,178
----------------- ---------------
Gross Profit 41,522 22,611
As a percent of revenues 53.1% 50.5%
Selling, general and administrative
expenses 29,802 15,763
As a percent of revenues 38.1% 35.2%
----------------- ---------------
Income from operations 11,720 6,848
As a percent of revenues 15.0% 15.3%
Other expense (income), net (454) (107)
----------------- ---------------
Income before income taxes 12,174 6,955
Provision for income tax 3,753 3,449
Non-controlling interest (55) (36)
----------------- ---------------
Net income $8,476 $3,542
================= ===============
Earnings per share:
Basic $0.13 $0.05
Diluted $0.12 $0.05
Weighted average
outstanding:
Basic 67,678,349 65,225,819
Diluted 71,650,999 66,060,218
Exhibit (2)
lululemon athletica inc.
Condensed Consolidated Balance Sheets
Expressed in thousands of dollars
(Unaudited)
May 4, 2008 February 3, 2008
--------------- ----------------
ASSETS
Current assets
Cash and cash equivalents $34,062 $53,339
Inventories 55,048 39,092
Other current assets 7,765 5,475
--------------- ----------------
Total current assets 96,875 97,906
Property and equipment, net 49,062 44,039
Goodwill and intangible assets, net 7,670 8,124
Other assets 5,717 5,023
--------------- ----------------
Total assets $159,324 $155,092
=============== ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $4,852 $5,200
Other current liabilities 25,349 24,902
Income taxes payable - 5,720
--------------- ----------------
Total current liabilities 30,201 35,822
Other non-current liabilities 7,546 7,236
Stockholders' equity 121,577 112,034
--------------- ----------------
Total liabilities and stockholders'
equity $159,324 $155,092
=============== ================
Source: lululemon athletica inc.