VANCOUVER, Canada--(BUSINESS WIRE)--
lululemon athletica inc. (NASDAQ: LULU; TSX: LLL) today announced
financial results for the thirteen weeks ended August 3, 2008.
For the thirteen weeks ended August 3, 2008:
-- Net revenue increased 48% to $85.5 million from $57.9 million
for the second quarter of fiscal 2007. Net revenue from
corporate-owned stores was $78.3 million, an increase of 50%
from $52.3 million for the second quarter of fiscal 2007, with
comparable-store sales increasing 13% on a constant-dollar
basis compared to the second quarter of fiscal 2007, or 18%
including the impact of currency.
-- Income from operations increased 52% to $15.5 million, or
18.2% of net revenue, compared to $10.2 million, or 17.7% of
net revenue, in the second quarter of fiscal 2007.
-- Diluted earnings per share from continuing operations were
$0.18 on net income of $12.3 million, compared to diluted
earnings per share of $0.08 on net income of $5.5 million in
the second quarter of fiscal 2007. Diluted earnings per share
were $0.16 after deducting a loss of $0.02 per share for
discontinued operations resulting from the Company's closure
of its stores in Japan.
For the twenty six weeks ended August 3, 2008:
-- Net revenue increased 59% to $162.4 million compared to $102.0
million for the same period in fiscal 2007. Net revenue from
corporate-owned stores increased 65% to $147.7 million
compared to $89.7 million for the same period in fiscal 2007,
with comparable store sales growth of 14% on a constant dollar
basis or 22% including the impact of currency.
-- Income from operations increased 58% to $27.5 million, or
16.9% of net revenue, compared to $17.4 million, or 17.0% of
net revenue, in the first six months of fiscal 2007.
-- Diluted earnings per share from continuing operations were
$0.29 on net income of $20.8 million, compared to diluted
earnings per share of $0.13 on net income of $9.3 million for
the same period in fiscal 2007. Diluted earnings per share
were $0.27 for the first twenty six weeks of fiscal 2008,
after deducting a loss of $0.02 per share for discontinued
operations.
Christine Day, lululemon's CEO stated: "We have a lot of
accomplishments to celebrate this quarter. We are pleased with our
financial performance, particularly in light of the current retail
environment, and have made notable progress on various initiatives in
real estate, systems and people that will support our long term growth
objectives. Looking ahead, we are excited by our continued sales
momentum and the tremendous opportunity for the lululemon brand as we
expand our store base and develop our e-commerce business."
Maintaining Guidance
Based on the results year to date and our outlook for the balance
of the year, the Company maintains its guidance for fiscal 2008
diluted earnings per share in the range of $0.68-$0.71.
The Company continues to expect revenue between $380 million and
$385 million based on anticipated comparable store sales growth of
high single digits on a constant dollar basis and 35 planned new store
openings in North America.
Although the Company benefited from a lower than expected tax rate
in the second quarter due to the timing of certain tax deductions, we
continue to expect an average effective tax rate in the low 30% range
for the full year and anticipate diluted weighted average shares
outstanding of approximately 71 million for 2008. Fiscal 2008 earnings
guidance includes a $0.02 charge per share recorded in the second
quarter resulting from the Company's closure of its four stores that
operated 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 second quarter results is scheduled
for today, September 11, 2008, at 9:00 AM Eastern Time. Investors
interested in participating in the call are invited to dial (877)
548-7912 approximately ten minutes prior to the start of the call. The
conference call will also be webcast live at www.lululemon.com.
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.
lululemon athletica inc.
Consolidated Statements of Operations (unaudited)
Expressed in thousands of dollars except per share amounts
Thirteen Three Twenty Six Six Months
Weeks Months Weeks Ended
Ended Ended Ended
August 3, July 31, August 3, July 31,
2008 2007 2008 2007
Net revenue $ 85,484 $ 57,900 $ 162,424 $ 102,039
Costs of goods sold 41,108 27,167 76,948 48,901
----------- ----------- ----------- -----------
Gross profit 44,376 30,733 85,476 53,138
As a percent of
revenues 51.9% 53.1% 52.6% 52.1%
Selling, general and
administrative
expenses 28,833 20,490 57,987 35,783
As a percent of
revenues 33.7% 35.4% 35.7% 35.1%
----------- ----------- ----------- -----------
Income from operations 15,543 10,243 27,489 17,355
As a percent of
revenues 18.2% 17.7% 16.9% 17.0%
Other expense
(income), net (211) (71) (489) (178)
----------- ----------- ----------- -----------
Income before
provision for income
taxes 15,754 10,314 27,978 17,533
Provision for income
taxes 3,415 4,798 7,169 8,247
----------- ----------- ----------- -----------
Net income from
continuing operations $ 12,339 $ 5,516 $ 20,810 $ 9,286
Net loss from
discontinued
operations (1,192) (394) (1,186) (623)
Net income $ 11,147 $ 5,122 $ 19,624 $ 8,663
Basic earnings /
(loss) per share:
Continuing operations $ 0.18 $ 0.08 $ 0.31 $ 0.14
Discontinued
operations (0.02) (0.01) (0.02) (0.01)
----------- ----------- ----------- -----------
Net basic earnings
per share $ 0.16 $ 0.07 $ 0.29 $ 0.13
Diluted earnings /
(loss) per share:
Continuing operations $ 0.18 $ 0.08 $ 0.29 $ 0.13
Discontinued
operations (0.02) (0.01) (0.02) (0.01)
----------- ----------- ----------- -----------
Net diluted earnings
per share $ 0.16 $ 0.07 $ 0.27 $ 0.12
Weighted average
outstanding:
Basic 68,106,601 65,225,819 67,892,456 65,225,819
Diluted 70,375,980 68,891,237 70,799,684 68,878,832
lululemon athletica inc.
Condensed Consolidated Balance Sheets
Expressed in thousands of dollars
August 3, February 3,
2008 2008
-------------------------------------------- ----------- ------------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 43,735 $ 52,545
Inventories 43,433 37,932
Other current assets 11,023 8,384
----------- ------------
Total current assets 98,191 98,861
Property and equipment, net 55,473 43,605
Intangible assets, net 7,374 8,124
Deferred income taxes and other assets 13,431 4,502
----------- ------------
Total assets $ 174,469 $ 155,092
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 1,322 $ 5,159
Other current liabilities 26,894 25,261
Income taxes payable --- 5,720
----------- ------------
Total current liabilities 28,216 36,140
Deferred income taxes and other non-current
liabilities 9,745 6,918
Stockholders' equity 136,508 112,034
----------- ------------
Total liabilities and stockholders' equity $ 174,469 $ 155,092
=========== ============
Source: lululemon athletica inc.