lululemon athletica inc. announced financial results for the first quarter of fiscal 2021.
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Calvin McDonald, Chief Executive Officer, stated, “Our first quarter results reflected strength across all drivers of growth, fueled by the continued expansion in our e-commerce business and a rebound in brick and mortar stores. Our strong performance across categories, channels and geographies demonstrates the momentum and strength of lululemon as we shift into the new normal. All of us on the leadership team are grateful to our teams around the world who enabled these results, and who continue to focus on realizing growth.”
The fiscal year ending 30th January, 2022 is referred to as “2021” and the fiscal year ended 31st January, 2021 is referred to as “2020”.
For the first quarter of 2021, compared to the first quarter of 2020, net revenue increased 88% to US$1.2 billion. On a constant dollar basis, net revenue increased 83%. Company-operated stores net revenue increased 106% to US$536.6 million. Direct to consumer net revenue increased 55% to US$545.1 million. On a constant dollar basis, direct to consumer net revenue increased 50%.
Net revenue increased 82% in North America, and increased 125% internationally. Direct to consumer net revenue represented 44.4% of total net revenue compared to 54.0% for the first quarter of 2020. Gross profit increased 109% to US$700.3 million and gross margin increased 580 basis points to 57.1%. Income from operations increased 492% to US$193.8 million. Adjusted income from operations increased 479% to US$201.5 million. Operating margin increased 1,080 basis points to 15.8%. Adjusted operating margin increased 1,110 basis points to 16.4%.
Income tax expense increased 827% to US$49.1 million. The effective tax rate for the first quarter of 2021 was 25.3% compared to 15.6% for the first quarter of 2020. The adjusted effective tax rate was 24.5% for the first quarter of 2021 compared to 14.7% for the first quarter of 2020.
Diluted earnings per share were US$1.11 compared to US$0.22 in the first quarter of 2020. Adjusted diluted earnings per share were US$1.16 compared to US$0.23 in the first quarter of 2020.
The Company repurchased 0.3 million shares of its own common stock at an average cost of US$311.02 per share. The Company opened two net new company-operated stores during the quarter, ending with 523 stores. The consolidated statement of operations for the first quarter of 2019 is included in the tables at the end of this release for reference. For the first quarter of 2021, compared to the first quarter of 2019:
Net revenue increased by US$444.2 million, or 57%, representing a two-year compound annual growth rate of 25%. Gross margin increased 320 basis points. Operating margin decreased 70 basis points. Adjusted operating margin decreased 10 basis points.
Diluted earnings per share were US$1.11 compared to US$0.74 in the first quarter of 2019. Adjusted diluted earnings per share were US$1.16 in the first quarter of 2021.
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Meghan Frank, Chief Financial Officer, stated, “We are very pleased with our Q1 results, which reflect significant growth in the business compared to both 2020 and 2019. Our momentum remains strong as we enter the second quarter, and we are raising our estimates for the year accordingly. The strength of our financial position allows us to continue to deliver against the Power of Three growth strategies, while we leverage both near- and long-term opportunities.”