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lululemon’s financial results for the third quarter of 2019

lululemon

lululemon athletica inc. announced financial results for the third quarter of fiscal 2019.

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For the third quarter ended November 3, 2019, net revenue was $916.1 million, an increase of 23% compared to the third quarter of fiscal 2018. On a constant dollar basis, net revenue increased 23%.

Total comparable sales increased 16%, or increased 17% on a constant dollar basis. Comparable store sales increased 10%, or increased 11% on a constant dollar basis. Direct to consumer net revenue increased 29%, or increased 30% on a constant dollar basis. Direct to consumer net revenue represented 26.9% of total net revenue compared to 25.3% for the third quarter of fiscal 2018.

Gross profit was $505.0 million, an increase of 24% compared to the third quarter of fiscal 2018. Income from operations was $175.8 million, an increase of 29% compared to the third quarter of fiscal 2018. Operating margin was 19.2%, an increase of 100 basis points compared to the third quarter of fiscal 2018.

Diluted earnings per share were $0.96 compared to $0.71 in the third quarter of fiscal 2018. Adjusted diluted earnings per share for the third quarter of fiscal 2018 were $0.75.

The Company repurchased 44.5 thousand shares of its own common stock at an average cost of $179.71 per share. The Company ended the third quarter of fiscal 2019 with $586.2 million in cash and cash equivalents compared to $703.6 million at the end of the third quarter of fiscal 2018. Inventories at the end of the third quarter of fiscal 2019 increased 26% to $627.1 million compared to $496.0 million at the end of the third quarter of fiscal 2018. The Company ended the quarter with 479 stores.

SEE ALSO : Lululemon shuts down its Ivivva business

Calvin McDonald, Chief Executive Officer, commented: “We are proud of the continued momentum in our business as we live into our vision to be an experiential brand. We are successfully executing on our Power of Three growth plan as we create authentic connections with new and existing guests around the world. I would like to thank our amazing teams for achieving this strong level of performance.”

(Source: lululemon)

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