VANCOUVER--(BUSINESS WIRE)--
lululemon athletica inc. [NASDAQ: LULU; TSX: LLL] today announced
financial results for the thirteen weeks ended May 3, 2009.
For the thirteen weeks ended May 3, 2009:
-- Net revenue increased 6% to $81.7 million from $77.0 million for the
first quarter of fiscal 2008. Net revenue from corporate-owned stores
was $72.9 million, an increase of 5% from $69.4 million for the first
quarter of fiscal 2008, with comparable-store sales decline of 8% on a
constant-dollar basis compared to the first quarter of 2008.
-- Gross profit as a percentage of net revenue decreased to 42.8% from
53.4% of net revenue in the first quarter of fiscal 2008.
-- Income from operations was $9.9 million, or 12.1% of net revenue,
compared to $11.9 million, or 15.5% of net revenue, in the first quarter
of fiscal 2008.
-- Diluted earnings per share were $0.09 on net income of $6.5 million,
compared to diluted earnings per share of $0.12 on net income of $8.5
million in the first quarter of fiscal 2008.
The Company ended the quarter with $59.3 million in cash and cash
equivalents as compared to $56.8 million at the end of fiscal 2008.
Inventory at the end of the quarter totaled $44.6 million as compared to
$52.1 million at the end of fiscal 2008.
Christine Day, lululemon's CEO stated: "We continue to manage the
long-term brand expansion while delivering against our short-term
commitments. Given the troubled outlook for the economy in early 2009
when we began the quarter, we are pleased with the current pace of our
business and our ability to continue to bring our customers through our
doors to make full price purchases. We remain committed to the quality
of our products and our ongoing innovation."
Updated Guidance
For the second quarter of fiscal 2009 we expect comparable-store sales
decline in the middle-single digits on a constant-dollar basis compared
to the second quarter of 2008. We anticipate reported net revenue to be
in the range of $85 million to $90 million for the quarter, and earnings
per share in the range of $0.08 to $0.09 for the quarter. This assumes a
tax rate of 34% and 70.5 million diluted weighted average shares
outstanding.
Conference Call Information
A conference call to discuss first quarter results is scheduled for
today, June 11, 2009, at 9:00 AM Eastern Time. Investors interested in
participating in the call are invited to dial (888) 417-8516
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,
visit www.lululemon.com.
Non-GAAP Financial Measure
Constant-dollar net revenue changes, which exclude the impact of changes
in foreign exchange rates, is not a Generally Accepted Accounting
Principle ("GAAP") performance measure. We provide constant-dollar net
revenue changes because we use the measure to understand the underlying
growth rate of revenue excluding the impact on a quarter by quarter
basis of changes in foreign exchange rates, which are not under
management's direct control. We believe that disclosing net revenue
changes on a constant-dollar basis is useful to investors because it
enables them to better understand the level of growth of our business.
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 or results of operations, our prospects and strategies for
future growth, 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," "outlook,"
"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; risks that consumer spending may continue to
decline and that U.S. and global macroeconomic conditions may worsen;
the possibility that levels of comparable store sales or average sales
per square foot will continue to decline; the possibility that we may
not be able to successfully expand in the United States and other new
markets; increased competition causing us to reduce the prices of our
products or to increase significantly our marketing efforts in order to
avoid losing market share; the possibility that we may not be able to
continually innovate and provide our consumers with improved products;
the possibility that our suppliers or manufacturers may not produce or
deliver our products in a timely or cost-effective manner; and other
risk factors detailed in our Annual Report on Form 10-K for the fiscal
year ended February 1, 2009 and in our subsequent reports on Form 10-Q
filed with the Securities and Exchange Commission and available at 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 these cautionary statements. 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.
Condensed Consolidated Statements of Operations
Expressed in thousands, except per share amounts
(Unaudited)
Thirteen Weeks Thirteen Weeks
Ended Ended
May 3, 2009 May 4, 2008
Net revenue $81,680 $77,030
Costs of goods sold 46,731 35,929
Gross profit 34,949 41,101
As a percent of revenues 42.8% 53.4%
Selling, general and administrative expenses 25,096 29,154
As a percent of revenues 30.7% 37.8%
Income from operations 9,853 11,947
As a percent of revenues 12.1% 15.5%
Other income (expense), net 78 277
Income before income taxes 9,931 12,224
Provision for income tax 3,413 3,753
Net income from continuing operations 6,518 8,471
Discontinued operations -- 5
Net income $6,518 $8,476
Earnings per share, continuing and discontinued
operations:
Basic $0.09 $0.13
Diluted $0.09 $0.12
Weighted-average number of shares
outstanding:
Basic 70,131 67,678
Diluted 70,331 71,651
lululemon athletica inc.
Condensed Consolidated Balance Sheets
Expressed in thousands
(Unaudited)
May 3, February 1,
2009 2009
ASSETS
Current assets
Cash and cash equivalents $59,271 $56,797
Inventories 44,635 52,051
Other current assets 10,003 8,140
Total current assets 113,909 116,988
Property and equipment, net 60,960 61,662
Goodwill and intangible assets, net 8,166 8,160
Other assets 24,751 24,826
Total assets $207,786 $211,636
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $5,218 $5,269
Other current liabilities 22,157 37,933
Income taxes payable -- 2,133
Total current liabilities 27,375 45,335
Other non-current liabilities 12,141 11,459
Stockholders' equity 168,270 154,842
Total liabilities and stockholders' equity $207,786$211,636
lululemon athletica inc.
Reconciliation of Non-GAAP Financial Measure
Constant-dollar changes
Thirteen Weeks Ended Thirteen Weeks Ended
May 3, 2009 May 4, 2008
% Change % Change
Comparable-store sales (GAAP) (21)% 28%
Increase (decrease) due to foreign 14% (13)%
exchange rate changes
Comparable-store sales in constant (8)% 15%
dollars
Source: lululemon athletica inc.