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Lululemon athletica Q1 net revenue increased 17%

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Staff writer ▼ | June 9, 2016
Lululemon athletica announced financial results for the first quarter ended May 1, 2016. Net revenue increased by 17% to $495.5 million from $423.5 million in Q1 2015, or increased by 19% on a constant dollar basis.
Lululemon athletica
Lululemon athletica   Total comparable sales increased by 6%
Total comparable sales, which includes comparable store sales and direct to consumer, increased by 6%, or by 8% on a constant dollar basis. Comparable store sales increased by 3%, or by 5% on a constant dollar basis.

Direct to consumer net revenue increased by 17% to $97.6 million, or by 18% on a constant dollar basis.

Gross profit increased by 16% to $239.1 million, and as a percentage of net revenue gross profit was 48.3% compared to 48.6% in the first quarter of fiscal 2015.

Income from operations decreased by 15% to $57.6 million from $68.0 million in the first quarter of fiscal 2015, and as a percentage of net revenue was 11.6% compared to 16.1% of net revenue in the first quarter of fiscal 2015.

Included in selling, general and administrative expenses were net foreign exchange losses of $13.5 million, primarily due to the revaluation of U.S. dollar cash and receivables held in Canada, which were $9.1 million more than the net foreign exchange losses in the first quarter of fiscal 2015.

Income tax expense was $11.8 million, which included a net income tax recovery of $5.6 million related to the Company's transfer pricing arrangements and the associated plan to repatriate foreign earnings. In addition, there was a related net interest expense of $1.2 million.

The effective tax rate in the first quarter of fiscal 2016 was 20.6% compared to 30.3% in the first quarter of fiscal 2015. Excluding the above tax and related interest adjustments, the effective tax rate was 29.8% in the first quarter of fiscal 2016.

Diluted earnings per share for the first quarter of fiscal 2016 were $0.33 compared to $0.34 in the first quarter of fiscal 2015. Excluding the above tax and related interest adjustments, diluted earnings per share were $0.30 for the first quarter of fiscal 2016.

During the first quarter of fiscal 2016, Lululemon athletica repurchased 0.2 million shares of the Company's common stock at an average cost of $65.01 per share.


 

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