Lululemon net income slips in Q2

Vancouver – Despite a healthy increase in net revenue, net income slipped at Lululemon Athletica during the second quarter of fiscal 2015.



Net income dropped 2% to $47.67 million from $48.75 million, with higher costs and expenses driving down profits.



Net revenue grew 16% to $453.01 million from $390.7 million, aided by an 11% increase in total comparable sales. This encompassed a 6% increase in same-store sales and 35% increase in direct-to-consumer sales.



"We exceeded our revenue targets for the past quarter, supported by strong performance from both our store and e-commerce channels,” said Laurent Potdevin, CEO of Lululemon. “Looking to the remainder of the year, our team is laser focused on meeting our strategic key goals: grow our global collective, relentlessly innovate our product lines and continue to create transformational experiences for our guests.”



For the third quarter of fiscal 2015, Lululemon expects diluted earnings per share in the range of $0.35 to $0.37 and net revenue in the range of $477 million to $482 million, based on total same-store sales in the high single digits.



For the full fiscal 2015, Lululemon expects diluted earnings per share in the range of $1.87 to $1.9 and net revenue to be in the range of $2.02 billion to $2.05 billion, based on total same-store sales in the high single digits. The third quarter and full year guidance does not reflect potential future repurchases of the company's shares.