We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Lululemon Athletica Inc | NASDAQ:LULU | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
4.35 | 1.24% | 355.15 | 300.00 | 367.00 | 356.97 | 351.77 | 355.20 | 1,257,862 | 05:00:01 |
Fourth quarter revenue up 20% to $1.4 billion Comparable sales increase 20% Diluted EPS of $2.28 for the fourth quarter
Full year revenue of $4.0 billion
lululemon athletica inc. (NASDAQ:LULU) today announced financial results for the fourth quarter and fiscal year ended February 2, 2020.
The summary below provides both GAAP and adjusted non-GAAP financial measures. The adjusted financial measures exclude the amounts recognized in connection with U.S. tax reform and taxes on the repatriation of foreign earnings during fiscal 2018.
For the fourth quarter ended February 2, 2020:
For the fiscal year ended February 2, 2020:
The Company ended fiscal 2019 with $1.1 billion in cash and cash equivalents compared to $881.3 million at the end of fiscal 2018. Inventories at the end of fiscal 2019 increased by 28% to $518.5 million compared to $404.8 million at the end of fiscal 2018. The Company ended the year with 491 stores.
Calvin McDonald, Chief Executive Officer, commented: "2019 was a strong year for lululemon, as our teams executed against our Power of Three growth plan. We are now navigating an extraordinary environment, which is currently impacting our business. The strength of our brand and strong financial position will help us manage through the day-to-day, while continuing to effectively plan for and invest in our future." McDonald continued: "I want to thank our people around the globe for the results they delivered in 2019, and for their perseverance and commitment to our brand each and every day."
COVID-19 Coronavirus
The outbreak of the COVID-19 coronavirus has been declared a pandemic by the World Health Organization and continues to spread in the United States, Canada, and in many other countries globally. Subsequent to February 2, 2020, in line with recommendations by public health officials and in accordance with governmental authority orders, we have taken actions to close certain retail locations and to reduce operating hours. We continue to monitor the situation and work closely with local authorities to prioritize the safety of our people and guests.
In February 2020, we temporarily closed all of our retail locations in Mainland China. All but one of these locations have since reopened. In March 2020, we temporarily closed all of our retail locations in North America, Europe, Malaysia, New Zealand, and we temporarily closed our distribution center in Sumner, WA. These locations currently remain closed.
Fiscal 2020 Outlook
Due to the impact that COVID-19 is having across the globe, and the rapid and continuous developments, we are not providing guidance for fiscal 2020 at this time. We will provide additional updates as the situation warrants.
Shifted Calendar for Comparable Sales
Due to the 53rd week in fiscal 2018, comparable sales are calculated on a one week shifted basis in fiscal 2019. Changes in total comparable sales, comparable store sales, and direct to consumer net revenue are calculated on a one week shifted basis such that the 13 and 52 weeks ended February 2, 2020 are compared to the 13 and 52 weeks ended February 3, 2019 rather than January 27, 2019.
Conference Call Information
A conference call to discuss fiscal 2019 results is scheduled for today, March 26, 2020, at 4:30 p.m. Eastern time. Those interested in participating in the call are invited to dial 1-800-319-4610 or 1-604-638-5340, if calling internationally, approximately 10 minutes prior to the start of the call. A live webcast of the conference call will be available online at: http://investor.lululemon.com/events.cfm. A replay will be made available online approximately two hours following the live call for a period of 30 days.
About lululemon athletica inc.
lululemon athletica inc. (NASDAQ:LULU) is a healthy lifestyle inspired athletic apparel company for yoga, running, training, and most other sweaty pursuits, creating transformational products and experiences which enable people to live a life they love. 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 Measures
Constant dollar changes in net revenue, total comparable sales, comparable store sales, and direct to consumer net revenue, and the adjusted financial results are non-GAAP financial measures.
A constant dollar basis assumes the average foreign exchange rates for the period remained constant with the average foreign exchange rates for the same period of the prior year. We provide constant dollar changes in net revenue, total comparable sales, comparable store sales, and direct to consumer net revenue because we use these measures to understand the underlying growth rate of net revenue excluding the impact of changes in foreign exchange rates. We believe that disclosing these measures on a constant dollar basis is useful to investors because it enables them to understand the level of growth of our business.
Adjusted income tax expense, effective tax rates, and diluted earnings per share exclude the amounts recognized in connection with U.S. tax reform and taxes on repatriation of foreign earnings. We believe these adjusted financial measures are useful to investors in evaluating the trend in our operating performance as the adjustments do not directly relate to our ongoing business operations. Furthermore, we do not believe the adjustments are reflective of our expectations of our future operating performance and believe these non-GAAP measures are useful to investors because of their comparability to our historical information.
The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or with greater prominence to, the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the section captioned "Reconciliation of Non-GAAP Financial Measures" included in the accompanying financial tables, which includes more detail on the GAAP financial measure that is most directly comparable to each non-GAAP financial measure, and the related reconciliations between these financial measures.
Forward-Looking Statements:
This press release includes estimates, projections, statements relating to our business plans, objectives, and expected operating results that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 also include our guidance and outlook statements. These 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: our ability to maintain the value and reputation of our brand; the acceptability of our products to our guests; the recent COVID-19 coronavirus outbreak and related government, private sector, and individual consumer responsive actions; our highly competitive market and increasing competition; our reliance on and limited control over third-party suppliers to provide fabrics for and to produce our products; suppliers or manufacturers not complying with our Vendor Code of Ethics or applicable laws; the operations of many of our suppliers are subject to international and other risks; an economic downturn or economic uncertainty in our key markets; increasing product costs and decreasing selling prices; our ability to anticipate consumer preferences and successfully develop and introduce new, innovative and updated products; our ability to accurately forecast guest demand for our products; our ability to safeguard against security breaches with respect to our information technology systems; any material disruption of our information systems; our ability to have technology-based systems function effectively and grow our e-commerce business globally; changes in consumer shopping preferences and shifts in distribution channels; the fluctuating costs of raw materials; our ability to expand internationally in light of our limited operating experience and limited brand recognition in new international markets; global economic and political conditions and global events such as health pandemics; our ability to deliver our products to the market and to meet guest expectations if we have problems with our distribution system; imitation by our competitors; our ability to protect our intellectual property rights; our ability to source and sell our merchandise profitably or at all if new trade restrictions are imposed or existing trade restrictions become more burdensome; changes in tax laws or unanticipated tax liabilities; our ability to manage our growth and the increased complexity of our business effectively; our ability to cancel store leases if an existing or new store is not profitable; increasing labor costs and other factors associated with the production of our products in South and South East Asia; our ability to successfully open new store locations in a timely manner; our ability to comply with trade and other regulations; the service of our senior management; seasonality; fluctuations in foreign currency exchange rates; conflicting trademarks and the prevention of sale of certain products; our exposure to various types of litigation; actions of activist stockholders; anti-takeover provisions in our certificate of incorporation and bylaws; and other risks and uncertainties set out in filings made from time to time with the United States Securities and Exchange Commission and available at www.sec.gov, including, without limitation, our most recent reports on Form 10-K and Form 10-Q. You are urged to consider these factors carefully in evaluating the forward-looking statements contained 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 we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law.
lululemon athletica inc.
Condensed Consolidated Statements of Operations
Unaudited; Expressed in thousands, except per share amounts
Quarter Ended
Fiscal Year Ended
February 2, 2020
February 3, 2019
February 2, 2020
February 3, 2019
Net revenue
$
1,397,491
$
1,167,458
$
3,979,296
$
3,288,319
Costs of goods sold
586,665
498,875
1,755,910
1,472,032
Gross profit
810,826
668,583
2,223,386
1,816,287
As a percent of net revenue
58.0
%
57.3
%
55.9
%
55.2
%
Selling, general and administrative expenses
394,339
337,163
1,334,276
1,110,451
As a percent of net revenue
28.2
%
28.9
%
33.5
%
33.8
%
Income from operations
416,487
331,420
889,110
705,836
As a percent of net revenue
29.8
%
28.4
%
22.3
%
21.5
%
Other income (expense), net
2,129
2,861
8,283
9,414
Income before income tax expense
418,616
334,281
897,393
715,250
Income tax expense
120,595
115,816
251,797
231,449
Net income
$
298,021
$
218,465
$
645,596
$
483,801
Basic earnings per share
$
2.29
$
1.66
$
4.95
$
3.63
Diluted earnings per share
$
2.28
$
1.65
$
4.93
$
3.61
Basic weighted-average shares outstanding
130,311
131,878
130,393
133,413
Diluted weighted-average shares outstanding
130,896
132,466
130,955
133,971
lululemon athletica inc.
Condensed Consolidated Balance Sheets
Unaudited; Expressed in thousands
February 2, 2020
February 3, 2019
ASSETS
Current assets
Cash and cash equivalents
$
1,093,505
$
881,320
Inventories
518,513
404,842
Prepaid and receivable income taxes
85,159
49,385
Other current assets
110,761
93,735
Total current assets
1,807,938
1,429,282
Property and equipment, net
671,693
567,237
Right-of-use lease assets
689,664
—
Goodwill and intangible assets, net
24,423
24,239
Deferred income taxes and other non-current assets
87,636
63,953
Total assets
$
3,281,354
$
2,084,711
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
$
79,997
$
95,533
Accrued inventory liabilities
6,344
16,241
Accrued compensation and related expenses
133,688
109,181
Current lease liabilities
128,497
—
Current income taxes payable
26,436
67,412
Unredeemed gift card liability
120,413
99,412
Other current liabilities
125,043
112,698
Total current liabilities
620,418
500,477
Non-current lease liabilities
611,464
—
Non-current income taxes payable
48,226
42,099
Deferred income tax liability
43,432
14,249
Other non-current liabilities
5,596
81,911
Stockholders' equity
1,952,218
1,445,975
Total liabilities and stockholders' equity
$
3,281,354
$
2,084,711
lululemon athletica inc.
Condensed Consolidated Statements of Cash Flows
Unaudited; Expressed in thousands
Fiscal Year Ended
February 2, 2020
February 3, 2019
Cash flows from operating activities
Net income
$
645,596
$
483,801
Adjustments to reconcile net income to net cash provided by operating activities
23,720
258,978
Net cash provided by operating activities
669,316
742,779
Net cash used in investing activities
(278,408
)
(242,794
)
Net cash used in financing activities
(177,173
)
(590,214
)
Effect of exchange rate changes on cash
(1,550
)
(18,952
)
Increase (decrease) in cash and cash equivalents
212,185
(109,181
)
Cash and cash equivalents, beginning of year
$
881,320
$
990,501
Cash and cash equivalents, end of year
$
1,093,505
$
881,320
lululemon athletica inc. Reconciliation of Non-GAAP Financial Measures Unaudited; Expressed in thousands, except per share amounts
Constant dollar changes in net revenue, total comparable sales, comparable store sales, and direct to consumer net revenue
The below changes in net revenue show the net change for the fourth quarter of fiscal 2019 compared to the fourth quarter of fiscal 2018. Due to the 53rd week in fiscal 2018, the below changes in total comparable sales, comparable store sales, and direct to consumer net revenue are calculated on a one week shifted basis such that the 13 weeks ended February 2, 2020 are compared to the 13 weeks ended February 3, 2019 rather than January 27, 2019.
Change in Net Revenue
Change in Total Comparable Sales1,2
Change in Comparable Store Sales2
Change in Direct to Consumer Net Revenue
Change
20
%
20
%
9
%
41
%
Adjustments due to foreign exchange rate changes
—
—
—
—
Change in constant dollars
20
%
20
%
9
%
41
%
The below changes in net revenue show the net change for fiscal 2019 compared to fiscal 2018. Due to the 53rd week in fiscal 2018, the below changes in total comparable sales, comparable store sales, and direct to consumer net revenue are calculated on a one week shifted basis such that the 52 weeks ended February 2, 2020 are compared to the 52 weeks ended February 3, 2019 rather than January 27, 2019.
Change in Net Revenue
Change in Total Comparable Sales1,2
Change in Comparable Store Sales2
Change in Direct to Consumer Net Revenue
Change
21
%
17
%
9
%
35
%
Adjustments due to foreign exchange rate changes
1
1
1
—
Change in constant dollars
22
%
18
%
10
%
35
%
__________
1
Total comparable sales includes comparable store sales and direct to consumer sales.
2
Comparable store sales reflects net revenue from company-operated stores that have been open for at least 12 full fiscal months, or open for at least 12 full fiscal months after being significantly expanded.
Adjusted financial measures
The following tables reconcile adjusted financial measures with the most directly comparable measures calculated in accordance with GAAP. The adjustments relate to the amounts recognized in connection with U.S. tax reform and taxes on repatriation of foreign earnings. Please refer to Note 15 to the audited consolidated financial statements included in Item 8 of Part II of our Report on Form 10-K to be filed with the SEC on or about March 26, 2020 for further information on these adjustments.
Quarter Ended February 3, 2019
GAAP Amounts
Adjustments
Adjusted Amounts (Non-GAAP)
Tax on Repatriation of Foreign Earnings
U.S. Tax Reform
(In thousands, except per share amounts)
Income tax expense
$
115,816
$
(23,714
)
$
(2,301
)
$
89,801
Effective tax rate
34.6
%
(7.0
)%
(0.7
)%
26.9
%
Diluted earnings per share
$
1.65
$
0.18
$
0.02
$
1.85
Fiscal Year Ended February 3, 2019
GAAP Amounts
Adjustments
Adjusted Amounts (Non-GAAP)
Tax on Repatriation of Foreign Earnings
U.S. Tax Reform
(In thousands, except per share amounts)
Income tax expense
$
231,449
$
(23,714
)
$
(7,464
)
$
200,271
Effective tax rate
32.4
%
(3.3
)%
(1.1
)%
28.0
%
Diluted earnings per share
$
3.61
$
0.18
$
0.05
$
3.84
lululemon athletica inc. Company-operated Store Count and Square Footage1 Square Footage Expressed in Thousands
Number of Stores Open at the Beginning of the Quarter
Number of Stores Opened During the Quarter
Number of Stores Closed During the Quarter
Number of Stores Open at the End of the Quarter
1st Quarter
440
15
—
455
2nd Quarter
455
5
—
460
3rd Quarter
460
21
2
479
4th Quarter
479
16
4
491
Total Gross Square Feet at the Beginning of the Quarter
Gross Square Feet Added During the Quarter2
Gross Square Feet Lost During the Quarter2
Total Gross Square Feet at the End of the Quarter
1st Quarter
1,426
40
—
1,466
2nd Quarter
1,466
56
—
1,522
3rd Quarter
1,522
87
5
1,604
4th Quarter
1,604
87
11
1,680
__________
1
Company-operated store count and square footage summary excludes retail locations operated by third parties under license and supply arrangements.
2
Gross square feet added/lost during the quarter includes net square foot additions for company-operated stores which have been renovated or relocated in the quarter.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200326005653/en/
Investors: lululemon athletica inc. Howard Tubin 1-604-732-6124 or ICR, Inc. Joseph Teklits/Caitlin Churchill 1-203-682-8200
Media: lululemon athletica inc. Erin Hankinson 1-604-732-6124 or Brunswick Group Eleanor French 1-415-671-7676
1 Year Lululemon Athletica Chart |
1 Month Lululemon Athletica Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions