lululemon athletica inc. [NASDAQ:LULU; TSX:LLL] today announced financial results for the third quarter ended October 30, 2011.

For the thirteen weeks ended October 30, 2011:
  • Net revenue for the quarter increased 31% to $230.2 million from $175.8 million in the third quarter of fiscal 2010.
  • Comparable stores sales for the third quarter increased by 16% on a constant dollar basis.
  • Direct to consumer revenue increased 71% to $23.9 million, or 10.4% of total Company revenues, in the third quarter of fiscal 2011, an increase from 8.0% of total Company revenues in the third quarter of fiscal 2010.
  • Gross profit for the quarter increased 33% to $128.5 million, and as a percentage of net revenue gross profit increased to 55.8% for the quarter from 55.1% in the third quarter of fiscal 2010.
  • Income from operations for the quarter increased 41% to $59.7 million, and as a percentage of net revenue was 25.9% compared to 24.1% of net revenue in the third quarter of fiscal 2010.
  • The tax rate for the quarter was 35.5% compared to 38.9% a year ago. The decrease resulted from a revision to management’s plans for repatriation of unremitted earnings of the Canadian operating subsidiary.
  • Presented on a post-split basis, diluted earnings per share for the quarter were $0.27 on net income of $38.8 million, compared to diluted earnings per share of $0.18 on net income of $25.7 million in the third quarter of fiscal 2010.

For the thirty-nine weeks ended October 30, 2011:
  • Net revenue for the first three quarters increased 35% to $629.3 million from $466.3 million in the same period of fiscal 2010.
  • Comparable stores sales for the first three quarters increased by 18% on a constant dollar basis.
  • Direct to consumer revenue increased 72% to $56.2 million, or 8.9% of total Company revenues, in the first three quarters of fiscal 2011, an increase from 7.0% of total Company revenues in the first three quarters of fiscal 2010.
  • Gross profit for the quarter increased 43% to $360.3 million, and as a percentage of net revenue gross profit increased to 57.2% for the first three quarters from 53.9% in the same period of fiscal 2010.
  • Income from operations for the first three quarters increased 57% to $170.9 million, and as a percentage of net revenue was 27.2% compared to 23.4% of net revenue in the same period of fiscal 2010.
  • The tax rate for the first three quarters was 35.8% compared to 39.7% a year ago. The decrease resulted from a revision to management’s plans for repatriation of unremitted earnings of the Canadian operating subsidiary.
  • Presented on a post-split basis, diluted earnings per share for the first three quarters were $0.76 on net income of $110.5 million, compared to diluted earnings per share of $0.47 on net income of $67.1 million in the same period of fiscal 2010.

The Company ended the third quarter of fiscal 2011 with $276.9 million in cash and cash equivalents compared to $224.8 million at the end of the third quarter of fiscal 2010. Inventory at the end of the third quarter of fiscal 2011 totaled $129.2 million compared to $73.0 million at the end of the third quarter of fiscal 2010. The Company ended the quarter with 165 stores in North America and Australia.

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