Lululemon strikes profitable pose in Q1

Vancouver – Lululemon Athletica Inc. struck a pose of profitability in the first quarter of fiscal 2015. Net income more than doubled to $47.8 million from $19 million a year earlier, aided by the elimination of a tax expense.



Net revenue increased 10% to $423.5 million, from $384.6 million. A 27% hike in direct-to-consumer net revenue, which now represents 20% of total company revenue, helped drive the overall improvement. Same-store sales dropped 1%.



"Our team’s solid performance resulted in another improving quarter – coming in ahead of our revenue expectations,” said Laurent Potdevin, CEO. “We drove positive trends in traffic, conversion, and brand engagement, along with a continued acceleration of our e-commerce business. To support our long term goals, we are intentionally striking a strategic balance between strong growth and investments within innovation and infrastructure."



For the second quarter of fiscal 2015, Lululemon expects net revenue to be in the range of $440 million to $445 million, based on total same-store sales in the high single digits on a constant dollar basis. For the full fiscal 2015, Lululemon now expects net revenue to be in the range of $2 billion to $2.05 billion based on total same-store sales in the mid-single digits on a constant dollar basis.