Lululemon posts profit jump

lululemonCanadian active wear retailer Lululemon Athletica has posted strong quarterly earnings and revenue, quelling concerns that its empty CEO seat would disrupt the company’s performance.

Lululemon reported comparable-sales growth of 11 per cent for the fourth quarter ending January 2018 when accounting for currency effects and direct-to-consumer channels, posting an 18-per cent increase in net revenue to $928.8 million.

Income from operations was $256.3 million, an increase of 30 per cent compared to the fourth quarter of fiscal 2016. Adjusted income from operations increased $61.5 million, or 31 per cent, to $258.1 million.

“We are seeing strong momentum across our business as we now move into 2018, which is further positioning us to achieve our 2020 revenue goal of $4 billion,” said Stuart Haselden, chief operating officer. “Importantly, we would like to thank our store educators, ambassadors, and the Lululemon collective around the world for their energy and passion that is enabling our continued success.”

The retailer said it expects first quarter net revenue to be in the range of $612 million to $617 million based on a total comparable sales increase in the low double digits.

For the full fiscal 2018, net revenue is expected to be in the range of $2.98 billion to $3.02 billion based on a total comparable sales increase in the mid-to-high single digits.

Last month Lululemon’s CEO Laurent Potdevin resigned amid an unspecified misconduct charge.

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