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Lululemon Athletica Inc. Announces Fourth Quarter And Full Year Fiscal 2012 Results

Stocks in this article: LLLLULU

Forward-Looking Statements:

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks, uncertainties and assumptions, such as statements regarding the effect of shipments of products that fail to comply with our technical specifications or that fail to conform to our quality control standards, the duration of any shortage of products available for sale in our stores or for delivery to guests or our ability to obtain replacement products in a timely manner, any expected loss of net revenue resulting from the inability to sell those products and related increased administrative and shipping costs, and our future financial condition or results of operations. In many cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "outlook," "believes," "intends," "estimates," "predicts," "potential" or the negative of these terms or other comparable terminology. These forward-looking statements are based on management's current expectations but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation: our reliance on and limited control over third-party suppliers to provide fabrics for and to produce our products; negative publicity regarding any of our products or our the production methods of any of our suppliers or manufacturers; the effects of shipments of products that fail to comply with our technical specifications or that fail to conform to our quality standards; the effects of a shortage of products available for sale in our stores or for delivery to guests; an economic downturn or economic uncertainty in our key markets; increasing product costs and decreasing selling prices; our inability to anticipate consumer preferences and successfully develop and introduce new, innovative and updated products; our inability to accurately forecast customer demand for our products; our inability to manage our growth and the increased complexity of our business effectively; the fluctuating costs of raw materials; our highly competitive market and increasing competition; an unforeseen disruption of our information systems; our inability to deliver our products to the market and to meet customer expectations due to problems with our distribution system; our inability to cancel store leases if an existing or new store is not profitable; increasing labor costs and other factors associated with the production of our products in China; our inability to successfully open new store locations in a timely manner; our failure to maintain the value and reputation of our brand; our failure to comply with laws related to our human resources policies or other procedures; our failure to comply with trade and other regulations; our competitors manufacturing and selling products based on our fabrics and manufacturing technology at lower prices than we can; our failure to protect our intellectual property rights; and other risks and uncertainties detailed in our Annual Report on Form 10-K for the fiscal year ended February 3, 2013 filed with the Securities and Exchange Commission and available at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. The forward-looking statements made herein speak only as of the date of this press release and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

       
 

lululemon athletica inc. Condensed Consolidated Statements of Operations Expressed in thousands, except per share amounts

 

Fourteen Weeks Ended February 3, 2013 (unaudited)

Thirteen Weeks Ended January 29, 2012 (unaudited)

Fifty-Three Weeks Ended February 3, 2013

Fifty-Two Weeks Ended January 29, 2012

 
Net revenue $485,489 $371,520 $1,370,358 $1,000,839
 
Costs of goods sold 210,982 162,476 607,532 431,488
 
Gross profit 274,507 209,044 762,826 569,351
As a percent of net revenue 56.5% 56.3% 55.7% 56.9%
 
Selling, general and administrative expenses 121,932 92,977 386,387 282,393
As a percent of net revenue 25.1% 25.1% 28.2% 28.2%

Income from operations

152,575 116,067 376,439 286,958
As a percent of net revenue 31.4% 31.2% 27.5% 28.7%
 
Other income (expense), net 1,457 380 4,957 2,500
 
Income before provision for income taxes 154,032 116,447 381,396 289,458
 
Provision for income taxes 44,657 42,558 109,965 104,494
Net Income 109,375 73,889 271,431 184,964

Net income attributable to non-controlling interest

-

371

875 901
 
Net income attributable to lululemon athletica inc. $109,375 $73,518 $270,556 $184,063
 
Net Basic earnings per share $0.76 $0.51 $1.88 $1.29
Net Diluted earnings per share $0.75 $0.51 $1.85 $1.27
 
Basic weighted-average shares outstanding 144,285 143,501 144,000 143,196
Diluted weighted-average shares outstanding 145,846 145,344 145,806 145,278
       
 

lululemon athletica inc. Condensed Consolidated Balance Sheets Expressed in thousands

 

February 3, 2013

January 29, 2012

 
ASSETS
Current assets
Cash and cash equivalents $590,179 $409,437
Inventories 155,222 104,097
Other current assets 41,652 13,559
Total current assets 787,053 527,093
Property and equipment, net 214,639 162,941
Goodwill and intangible assets, net 30,201 31,872
Deferred income taxes and other assets 19,185 12,728
Total assets $1,051,078 $734,634
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable $1,045 $14,536
Other current liabilities 92,675 80,183
Income taxes payable 39,637 8,720
Total current liabilities 133,357 103,439
Non-current liabilities 30,422 25,014
Stockholders’ equity 887,299 606,181
Total liabilities and stockholders’ equity $1,051,078 $734,634
       
 

lululemon athletica inc. Condensed Consolidated Statements of Cash Flows Expressed in thousands

 

Fifty-Three Weeks Ended February 3, 2013

Fifty-Two Weeks Ended January 29, 2012

 
Cash flows from operating activities
Net income $271,431 $184,964
Items not affecting cash 40,940 32,381
Other, including net changes in other non-cash balances (32,258) (13,730)
Net cash provided by operating activities 280,113 203,615
Net cash used in investing activities (93,229) (122,311)
 
Net cash (used in) provided by financing activities (5,491) 15,364
 
Effect of exchange rate changes on cash (651) (3,517)
 
Increase in cash and cash equivalents 180,742 93,151
Cash and cash equivalents, beginning of year $409,437 $316,286
Cash and cash equivalents, end of year $590,179 $409,437
       
 

lululemon athletica inc. Reconciliation of Non-GAAP Financial Measure Constant-dollar changes (unaudited)

 

Thirteen Weeks Ended January 27, 2013 1

Thirteen Weeks Ended January 29, 2012

% Change % Change
Comparable-store sales (GAAP) 11% 25%
 
Adjustments due to changes in foreign exchange rates (1)% 1%
 
Comparable-store sales in constant dollars 10% 26%

1 The fourteenth week’s sales of the fourth quarter of fiscal 2012 are not included in the calculation of the comparable-store sales changes.

                 
 

lululemon athletica inc. Store Count and Square Footage 1 Fifty-Three Weeks Ended February 3, 2013 Square Footage Expressed in Thousands

 

Number of Stores Open at the Beginning of the Quarter

Number of Stores Opened During the Quarter 2

Number of Stores Closed During the Quarter

Number of Stores Open at the End of the Quarter

 
1 st Quarter 174 6 0 180
2 nd Quarter 180 9 0 189
3 rd Quarter 189 12 0 201
4 th Quarter 201 10 0 211
 

Total Gross Square Feet at the Beginning of the Quarter

Gross Square Feet Added During the Quarter 2,3

Gross Square Feet Lost During the Quarter 3

Total Gross Square Feet at the End of the Quarter

 
1 st Quarter 494 14 0 508
2 nd Quarter 508 30 0 538
3 rd Quarter 538 35 0 573
4 th Quarter 573 29 0 602

1 Store count and square footage summary includes corporate-owned stores which are branded lululemon athletica and ivivva athletica.

2 Number of stores opened during the quarters which are branded lululemon athletica and ivivva athletica.

3 Gross square feet added/lost during the quarters includes net square foot additions for corporate-owned stores which have been renovated or relocated in the quarter.



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