Lululemon ends year with double-digit sales growth
Lululemon Athletica Inc. announced on Wednesday better-than-expected fourth quarter and full year results, as the trendy athleisurewear company showed no signs of slowing demand.
The Vancouver, British Columbia-based company posted net revenue of $3.3 billion, for the fiscal year ended February 3, 2019, jumping 24 percent compared to fiscal 2017. Store sales were also strong with comparable store sales increasing 7 percent, while direct-to-consumer net revenue increased 45 percent.
Likewise, fourth quarter revenue saw double-digit sales growth with net revenue up 26 percent reaching $1.2 billion. Comparable store sales increased 6 percent, while direct-to-consumer net revenue increased 37 percent.
"Lululemon has delivered one of its strongest years yet, a result of broad-based strength across the business. I'm thrilled that we achieved several of our 2020 goals ahead of schedule, and want to thank our teams for their passion, hard work and connection with our guests every day. We are energized to build upon our momentum and to seize the many opportunities ahead for lululemon around the world," said CEO, Calvin McDonald, in a news statement.
The Canadian athleisurewear giant has been investing heavily into its online business, which is paying off with online sales in China particularly strong, showing potential as its next hot market.
The company also announced plans to open e-commerce markets in France, Japan and Germany, alongside plans to open 25 to 30 stores outside North America.
During the quarter it earned net income of $218.5 million, or $1.65 per share, while it ended the year with reported profit of $483.8 million, or $3.61 per share.
Looking ahead, the company is expecting to see first quarter net revenue in the range of $740 million to $750 million based on a total comparable sales increase in the low-double digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of $0.68 to $0.70 for the quarter.
For the full fiscal 2019, Lululemon expects net revenue to be in the range of $3.7 billion to $3.74 billion, based on a similar low-double digit comparable sales increase on a constant dollar basis. Diluted earnings per share are expected to be in the range of $4.48 to $4.55 for the full year.
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