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Lululemon net income dips

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Vancouver, B.C. – Lululemon Athletica Inc. reported a slight drop in net income during second quarter 2013.

Net income dipped about 1% to $56.45 million, from $57.7 million.

Net revenue grew 22% to $344.5 million from $282.6 million, and same-store sales increased 8%.

Christine Day, the outgoing CEO of Lululemon (she is staying until a replacement is found), said the retailer has worked its way back from the negative impact of having to recall yoga pants made from black luon that turned out to be see-through in March of this year. Lululemon is also entering an exclusive agreement to use Noble Biomaterials’ X-static antimicrobial technology in its performance apparel to help eliminate odor.

“We have not only worked our way back from the black luon setback, but have also added very talented people in important functions and have taken major steps forward on a number of key fronts including the expansion of our international and men's businesses and many logistical initiatives,” said Day. “In addition, our exclusive partnership with Noble announced today and additional sources for luon will help to ensure that Lululemon remains a distinct leader in quality and innovation. We are well on our way to finishing 2013 as a much stronger company than when the year began. I am confident that the leadership currently in place coupled with a new CEO will have tremendous success leveraging the platform for growth."

For the third quarter of this fiscal year, Lululemon expects net revenue to be in the range of $370 million to $375 million based on a same-store sales percentage increase in the mid-single digits. Full-year net revenue is expected to reach $1.625 billion to $1.635 billion.

 

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