- Prachi Singh |
Net revenue at Lululemon Athletica for the third quarter ended October 30, 2016 increased by 13 percent to 544.4 million dollars from 479.7 million dollars in the third quarter of fiscal 2015. Total comparable sales, which includes comparable store sales and direct to consumer, increased by 7 percent and comparable store sales increased by 4 percent. Diluted earnings per share were 0.50 dollar compared to 0.38 dollar in the third quarter of fiscal 2015.
Commenting on the company’s progress, Laurent Potdevin, Lululemon's CEO, stated in a statement, "Our third quarter results demonstrated strong execution across all areas of our business as we delivered continued topline momentum, outperformed in gross margin and inflected meaningfully in EPS. As we entered the fourth quarter, we experienced mixed sales results that have since improved."
Q3 gross profit improves 24 percent
The company said, direct to consumer net revenue increased by 16 percent to 104 million dollars, while gross profit increased by 24 percent to 278.4 million dollars. As a percentage of net revenue gross profit was 51.1 percent compared to 46.9 percent in the third quarter of fiscal 2015.
Income from operations increased by 36 percent to 93 million dollars from 68.2 million dollars in the same quarter of fiscal 2015, and as a percentage of net revenue was 17.1 percent compared to 14.2 percent of net revenue last year. Excluding certain tax and related interest adjustments, diluted earnings per share were 0.47 dollars compared to 0.35 dollars last year.
Lululemon Athletica updates Q4 outlook
For the fourth quarter of fiscal 2016, the company expects net revenue to be in the range of 765 million dollars to 785 million dollars based on total comparable sales in the mid-single digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of 0.96 dollar to 1.01 dollars for the quarter.
For the full fiscal 2016, net revenue is expected to be in the range of 2.320 billion dollars to 2.340 billion dollars based on total comparable sales in the mid-single digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of 2.18 dollars to 2.23 dollars or 2.11 dollars to 2.16 dollars normalized for the tax and related interest adjustments made during the first three quarters of fiscal 2016.