Lululemon Athletica Q2 net revenue up 33 percent

Lululemon Athletica’s net revenue for the second quarter ended July 29, 2012, increased 33 percent to 282.6 million dollars from 212.3 million dollars in the second quarter of fiscal 2011. Comparable stores sales for the second quarter increased by 15 percent on a constant dollar basis.

Lululemon Athletic, based in British Columbia, is a yoga-inspired athletic apparel company. The company’s direct to consumer revenue increased 91 percent to 35.4 million dollars, or 12.5 percent of total company revenues, in the second quarter of fiscal 2012, an increase from 8.8 percent of total company revenues in the second quarter of fiscal 2011. Gross profit for the quarter increased 28 percent to 155.8 million dollars, and as a percentage of net revenue gross profit was 55.1 percent for the quarter as compared to 57.5 percent in the second quarter of fiscal 2011. Income from operations for the quarter increased 18 percent to 70.2 million dollars, and as a percentage of net revenue was 24.8 percent as compared to 28 percent of net revenue in the second quarter of fiscal 2011.

Christine Day, Lululemon's CEO, stated: "We continue to strive for the right balance between strong growth and maintaining our market leader focus on execution, innovation and investments in infrastructure and while doing so delivered another strong quarter."

Net revenue for the first half of fiscal 2012 increased 42 percent to 568.3 million dollars from 399.1 million dollars in the same period of fiscal 2011. Comparable stores sales for the first two quarters of fiscal 2012 increased by 20 percent on a constant dollar basis. Direct to consumer revenue increased 128 percent to 73.9 million dollars, or 13 percent of total company revenues, in the first two quarters of fiscal 2012, an increase from 8.1 percent of total company revenues in the first two quarters of fiscal 2011.

Gross profit for the first two quarters of fiscal 2012 increased 35 percent to 313 million dollars, and as a percentage of net revenue gross profit was 55.1 percent for the first two quarters as compared to 58.1 percent in the same period of fiscal 2011. Income from operations for the first two quarters increased 29 percent to 143.3 million dollars, and as a percentage of net revenue was 25.2 percent as compared to 27.9 percent of net revenue in the same period of fiscal 2011.

Diluted earnings per share for the first two quarters of fiscal 2012 were 0.71 dollars on net income of 103.9 million dollars, compared to diluted earnings per share of 0.49 dollars on net income of 71.8 million dollars in the same period of fiscal 2011. First two quarters’ diluted earnings per share normalized for the tax adjustment were 0.70 dollars and would have been 0.63 dollars at the previously estimated effective tax rate of 36.5 percent.