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Lululemon athletica Q2 net revenue increased by 14%

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Staff Writer | September 2, 2016
Lululemon athletica announced financial results for the second quarter ended July 31, 2016. Net revenue increased by 14% to $514.5 million from $453.0 million in Q2 2015, or increased by 15% on a constant dollar basis.
Lululemon athletica
Lululemon athletica   Total comparable sales increased by 4%
Total comparable sales, which includes comparable store sales and direct to consumer, increased by 4%, or by 5% on a constant dollar basis.

Comparable store sales increased by 3%, or by 4% on a constant dollar basis.

Direct to consumer net revenue increased by 6% to $87.4 million, or by 7% on a constant dollar basis. In the second quarter of fiscal 2015 we held an online warehouse sale. Excluding the impact of this online warehouse sale, direct to consumer net revenue would have increased by 16%.

Gross profit increased by 20% to $254.2 million, and as a percentage of net revenue gross profit was 49.4% compared to 46.8% in the second quarter of fiscal 2015.

Income from operations increased by 11% to $74.0 million from $66.6 million in the second quarter of fiscal 2015, and as a percentage of net revenue was 14.4% compared to 14.7% of net revenue in the second quarter of fiscal 2015.

Income tax expense was $20.9 million, which included a net income tax recovery of $1.9 million related to Lululemon athletica's transfer pricing arrangements and the associated plan to repatriate foreign earnings. In addition, there was a related net interest expense of $0.3 million.

The effective tax rate in the second quarter of fiscal 2016 was 28.1% compared to 29.3% in the second quarter of fiscal 2015. Excluding the above tax and related interest adjustments, the effective tax rate was 30.5% in the second quarter of fiscal 2016.

Diluted earnings per share for the second quarter of fiscal 2016 were $0.39 compared to $0.34 in the second quarter of fiscal 2015. Excluding the above tax and related interest adjustments, diluted earnings per share were $0.38 for the second quarter of fiscal 2016.

During the second quarter of fiscal 2016, Lululemon athletica repurchased 0.2 million shares of Lululemon athletica's common stock at an average cost of $63.65 per share, completing our approved stock repurchase program.


 

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