lululemon athletica inc. announced financial results for the fourth quarter and fiscal year ended February 3, 2013.
For the fourth quarter ended February 3, 2013:
- Net revenue for the quarter increased 31% to $485.5 million from $371.5 million in the fourth quarter of fiscal 2011. The fourth quarter of fiscal 2012 consisted of 14 weeks while the fourth quarter of fiscal 2011 consisted of 13 weeks. Net sales for the quarter include an additional week; however comparable stores sales calculations exclude the 14th week.
- Comparable stores sales for the fourth quarter increased by 10% on a constant dollar basis. This increase excludes corporate store sales of $18.7 million for the 14th week of the quarter.
- Direct to consumer revenue increased 56% to $78.3 million, or 16.1% of net revenue, in the fourth quarter of fiscal 2012, from 13.5% of net revenue in the same period last year. This increase includes $4.2 million of net revenue from the 14th week of the quarter.
- Gross profit for the quarter increased by 31% to $274.5 million, and as a percentage of net revenue gross profit increased to 56.5% for the quarter from 56.3% in the fourth quarter of fiscal 2011.
- Income from operations for the quarter increased by 31% to $152.6 million, and as a percentage of net revenue was 31.4% compared to 31.2% of net revenue in the fourth quarter of fiscal 2011.
- The tax rate for the quarter was 29.0% compared to 36.5% a year ago. The lower effective rate reflects the ongoing impact of revised intercompany pricing agreements.
- Diluted earnings per share for the quarter were $0.75 on net income of $109.4 million, compared to diluted earnings per share of $0.51 on net income of $73.5 million in the fourth quarter of fiscal 2011.
For the fiscal year ended February 3, 2013:
- Net revenue for the fiscal year increased 37% to $1.4 billion from $1.0 billion in fiscal 2011. Fiscal 2012 consisted of 53 weeks while fiscal 2011 consisted of 52 weeks. Net sales for the year include an additional week; however, comparable stores sales and sales per square foot calculations exclude the 53rd week.
- Comparable stores sales for fiscal 2012 increased by 16% on a constant dollar basis, resulting in $2,058 annual salesper square foot for comparable stores for fiscal 2012.
- Direct to consumer revenue increased 86% to $197.3 million, or 14.4% of net revenue in fiscal 2012, from 10.6% of net revenue in fiscal 2011.
- Gross profit for fiscal 2012 increased by 34% to $762.8 million, from $569.4 million in fiscal 2011. As a percentage of net revenue, gross profit decreased to 55.7% compared to 56.9% in fiscal 2011.
- Income from operations increased by 31% to $376.4 million, from $287.0 million in fiscal 2011. As a percentage of net revenue, income from operations decreased to 27.5% compared to 28.7% of net revenue in fiscal 2011.
- The tax rate for fiscal 2012 was 28.8% compared to 36.1% for fiscal 2011. The lower effective rate reflects the ongoing impact of revised intercompany pricing agreements.
- Diluted earnings per share in fiscal 2012 increased 46% to $1.85 on net income of $270.6 million, compared to diluted earnings per share of $1.27 on net income of $184.1 million in fiscal 2011.
The Company ended fiscal 2012 with $590.2 million in cash and cash equivalents compared to $409.4 million at the end of fiscal 2011. Inventory at the end of fiscal 2012 was $155.2 million compared to $104.1 million at the end of fiscal 2011. The Company ended the quarter with 211 stores in North America and Australia.
Christine Day, lululemon's CEO, stated: "The fundamentals of our business are strong, we delivered excellent results in 2012, and we plan to continue to earn the loyalty of our customers and shareholders every day going forward.
"As previously announced on March 18th, we pulled a selection of our black Luon pants from our stores. Delivering the top quality our guests expect is a critical factor in our differentiation in the market place.
“Our proprietary fabric, black Luon, is a very technical and sensitive product to manufacture. We have a long history with our manufacturers and as we have in the past, we are working closely with them to resolve the current issues.
"We have a team on site collaborating with them to identify the root cause. We have recently added strong leadership in Quality Control, our Liason Office and our commercialization and development teams, and expect these people and other investments to solidify our quality consistency and our delivery capabilities."
