The athletic apparel retailer reports strong web and total sales growth after announcing a new CEO and a new chairman earlier this week. Total Q3 sales for Lululemon grew 20% year over year.
Katie Evans , Managing Editor, International Research
The week thus far has been a workout for Lululemon Athletica Inc. On Tuesday the retailer announced that Laurent Potdevin, president of shoe brand Toms, will replace Christine Day as CEO and that founder and chairman Chip Wilson would be stepping down in the wake of controversial remarks he made about women fitting in to the retailer’s line of yoga pants.
Today, the retailer, No. 122 in the Internet Retailer Top 500 Guide has good news to share as it reports strong year-over-year growth in web and overall sales for its fiscal third quarter ending Nov. 3.
For fiscal Q3 the retailer reports:
• Direct-to-consumer sales, mainly online sales, increased 37% year over year to reach $62.0 million from $45.2 million in the third quarter of 2012.
• Direct-to-consumer sales accounted for 16.3% of total company revenue compared with 14.3% a year earlier
• Total net revenue increased 20% to $379.9 million compared with $316.5 million in fiscal Q3 2012.
• Comparable-store sales for the first quarter increased 5%, compared to a hike of 18% for the same period a year earlier.
• Gross profit for the quarter increased 17% to $204.6 million from $174.8 million a year earlier. As a percentage of net revenue, gross profit decreased to 53.9% for the quarter from 55.4% in the third quarter of fiscal 2012.
• Income from operations for the quarter increased 14.6% to $92.3 million from $80.5 million and as a percentage of net revenue was 24.3% compared to 25.5% in the Q3 of fiscal 2012.
• Net income is $66.1 million, up 15.3% compared with net income of $57.3 million in Q3 of fiscal 2012.
For the first three fiscal quarters, the company reports:
• Direct-to-consumer sales rose 39% year over year to $165.3 million from $118.9 million in the first three fiscal quarters of 2012.
• Direct-to-consumer sales accounted for about 15.5% of total company revenue compared with 13.4% for the same period a year earlier
• Total net revenue increased 21% to $1.07 billion compared with $884.9 million in the same period in 2012.
• Comparable-store sales increased by 7%.
• Gross profit increased 15% to $561.3 million from$488.0 milliona year earlier. As a percentage of net revenue, gross profit was 52.4% compared to 55.2% in the first three fiscal quarters of 2012.
• Income from operations increased 6% to $237.2 million from $223.7 million, and as a percentage of net revenue was 22.2% compared to 25.3% in the same period of fiscal 2012.
• Net income was $169.9 million, up 5.3% compared to net income of $161.2 million a year earlier.
The company ended the quarter with 247 stores in North America and Australia, compared with 226 at the beginning of its fiscal Q3.
“This so far has been a year of challenges, learning, and growth for Lululemon,” says outgoing CEO Day. “I believe that the investments we are making in the business combined with the team in place create a strong platform for growth in the years ahead."