Lululemon Is Stretching Their Legs $LULU

morykan Wed Mar 30, 2016 9:23am EST 1 Comment

LULULEMON REACHES A $2 BILLION REVENUE MILESTONE, so that’s cool.

I don’t think being fit and healthy is just a millennial fad anymore guys..it’s here to stay..I’d say the fact that soda consumption is down a ton is a sign of that. Lululemon is riding the curtails of everyone’s new found love for fitness and such. Hell, my girlfriend must have at least 10 pairs of this stuff. I offered to buy her the stock once instead of the pants..she just doesn’t understand.

$LULU reported Q4 and full year Fiscal 2015 today and they went as such..

Q4:

Net revenue for the quarter increased 17% to $704.3 million from $602.5 million in the fourth quarter of fiscal 2014.

Total comparable sales, which includes comparable store sales and direct to consumer, increased by 11% for the fourth quarter on a constant dollar basis.

Comparable store sales for the fourth quarter increased by 5% on a constant dollar basis and direct to consumer net revenue increased 33% on a constant dollar basis.

Direct to consumer net revenue increased 28% to $146.3 million, or 20.8% of total Company net revenue, in the fourth quarter of fiscal 2015, an increase from 19.0% of total Company net revenue in the fourth quarter of fiscal 2014.

Gross profit for the quarter increased by 14% to $354.5 million, and as a percentage of net revenue gross profit was 50.3% for the quarter compared to 51.5% in the fourth quarter of fiscal 2014.

Income from operations for the quarter increased by 6% to $166.3 million, and as a percentage of net revenue was 23.6% compared to 26.1% of net revenue in the fourth quarter of fiscal 2014.

Income tax expense for the fourth quarter of fiscal 2015 was $49.8 million compared to $48.1 million in the fourth quarter of fiscal 2014. The effective tax rate for the quarter was 29.8% compared to 30.3% in the fourth quarter of fiscal 2014.

Diluted earnings per share for the fourth quarter of fiscal 2015 were $0.85 compared to $0.78 in the fourth quarter of fiscal 2014.

During the fourth quarter of fiscal 2015, the Company repurchased 2.1 million shares of the Company’s common stock at an average cost of $49.52 per share.

Fiscal 2015:

Net revenue for the fiscal year increased 15% to $2.1 billion from $1.8 billion in fiscal 2014.

Total comparable sales increased by 10% for fiscal 2015 on a constant dollar basis.

Comparable store sales increased 4% on a constant dollar basis for fiscal 2015 and direct to consumer net revenue increased 30% on a constant dollar basis. Company-operated stores which have been open for at least one year averaged sales of $1,541 per square foot.

Direct to consumer net revenue increased 25% to $401.5 million, or 19.5% of total Company net revenue in fiscal 2015, an increase from 17.9% of total Company net revenue in fiscal 2014.

Gross profit for fiscal 2015 increased by 9% to $997.2 million, from $914.2 million in fiscal 2014, and as a percentage of net revenue was 48.4% compared to 50.9% in fiscal 2014.

Income from operations for fiscal 2015 decreased by 2% to $369.1 million, from $376.0 million in fiscal 2014. As a percentage of net revenue, income from operations decreased to 17.9% compared to 20.9% of net revenue in fiscal 2014.

Income tax expense for fiscal 2015 was $102.4 million, which includes a net income tax recovery of $7.4 million related to the Company’s transfer pricing arrangements and estimated taxes associated with the repatriation of foreign earnings. The effective tax rate was 27.8% for fiscal 2015 compared to 37.6% for fiscal 2014. The effective tax rate excluding certain tax and related interest adjustments would have been 29.5% for fiscal 2015 compared to 28.8% for fiscal 2014.

Diluted earnings per share for fiscal 2015 were $1.89 compared to $1.66 in fiscal 2014. Excluding the above tax and related interest adjustments, diluted earnings per share were $1.86 for fiscal 2015 compared to $1.89 in fiscal 2014.

Lululemon Athlethica, $LULU is currently up nearly 8% in today’s session with a long way to go.