The net revenue of Lululemon Athletica has been reported at $782.3 mn in the first quarter of fiscal 2019, an increase of 20 per cent compared to the first quarter of fiscal 2018. On a constant dollar basis, net revenue rose 22 per cent. In the reported quarter, the total comparable sales improved 14 per cent, or 16 per cent on a constant dollar basis. In the reported quarter, comparable store sales gained 6 per cent, or 8 per cent on a constant dollar basis. Direct to consumer net revenue hiked 33 per cent or 35 per cent on a constant dollar basis. Gross profit was $421.7 mn, a growth of 22 per cent compared to the first quarter of fiscal 2018.
The company ended the first quarter of fiscal 2019 with $576.2 mn in cash and cash equivalents compared to $966.6 mn at the end of the first quarter of fiscal 2018. Inventories at the end of the first quarter of fiscal 2019 went up 19 per cent to $443.0 mn compared to $373.4 mn at the end of the first quarter of fiscal 2018. The company ended the quarter with 455 stores.
“Lululemon continues to see strong momentum across the entire business. I’m inspired by our teams who are executing at high levels, and I want to thank everyone across the globe for their passion and dedication to the brand. I look forward to the opportunities ahead of us, and delivering on our Power of Three five-year vision,” Calvin McDonald, Chief Executive Officer, said.
For the second quarter, the company expects net revenue to be in the range of $825 mn to $835 mn based on a total comparable sales increase in the low double digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of $0.86 to $0.88 for the quarter. This guidance assumes 131 mn diluted weighted-average shares outstanding and a 28 per cent tax rate. The guidance does not reflect potential future repurchases of the company’s shares.
For the full fiscal 2019, the company projects net revenue to be in the range of $3.730 bn to $3.770 bn based on a total comparable sales increase in the low double digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of $4.51 to $4.58 for the full year, based on a 28 per cent effective tax rate.
