Lululemon posts Q4 revenue growth of 12 percent
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Net revenue at Lululemon Athletica for the fourth quarter ended January 29, 2017 increased 12 percent to 789.9 million dollars from 704.3 million dollars in the fourth quarter of fiscal 2015. On a constant dollar basis, net revenue increased 12 percent. For the full fiscal year net revenue increased 14 percent to 2.3 billion dollars from 2.1 billion dollars in fiscal 2015. On a constant dollar basis, net revenue increased 14 percent.
Commenting on the company’s performance, Laurent Potdevin, CEO, Lululemon, said in a media statement, "2016 marks a milestone year where our successful execution against long-term strategies returned the company to positive operating income growth for the first time in three years."
Fourth quarter and full year highlights
Total fourth quarter comparable sales, which includes comparable store sales and direct to consumer, increased 8 percent or 7 percent on a constant dollar basis. Comparable store sales increased 6 percent, also on constant dollar basis, while direct to consumer net revenue increased 12 percent to 164.3 million dollars or 12 percent on a constant dollar basis.
Total comparable sales increased 6 percent or 7 percent on a constant dollar basis, while comparable store sales increased 4 percent or 5 percent on a constant dollar basis. Direct to consumer net revenue increased 13 percent on both current and constant exchange to 453.3 million dollars.
Gross profit increased 21 percent to 427.9 million dollars in the quarter and as a percentage of net revenue was 54.2 percent compared to 50.3 percent in the fourth quarter of fiscal 2015. Diluted earnings per share were 0.99 dollar compared to 0.85 dollar in the fourth quarter of fiscal 2015. Excluding certain tax and related interest adjustments, diluted earnings were 1 dollar compared to 0.85 dollar in the fourth quarter of fiscal 2015.
Full year gross profit increased 20 percent to 1.2 billion dollars and as a percentage of net revenue was 51.2 percent compared to 48.4 percent in fiscal 2015. Diluted earnings per share were 2.21 dollars compared to 1.89 dollars in fiscal 2015. Excluding certain tax and related interest adjustments, diluted earnings were 2.14 dollars compared to 1.86 dollars in fiscal 2015. The Company ended the year with 406 stores.
Expects low-single digit decline in Q1 comparable sales
For the first quarter of fiscal 2017, the company expects net revenue to be in the range of 510 million dollars to 515 million dollars based on a total comparable sales decrease in the low-single digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of 0.25 dollar to 0.27 dollar for the quarter.
For the full fiscal 2017, Lululemon expects net revenue to be in the range of 2.550 billion dollars to 2.600 billion dollars based on a total comparable sales increase in the low-single digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of 2.26 dollars to 2.36 dollars for the full year.
Summing upPicture:Lululemon Athletica website