Lululemon stretches profits and sales
Yoga-inspired retailer Lululemon Athletica Inc. warned Thursday that it expects slower sales growth in the final three months of this year.
In its outlook, the company (TSX:LLL) projects comparable-store sales growth in the high single digits in the fourth quarter, which began Oct. 29. That's down from 18 per cent comparable-store sales growth in the third quarter.
The restrained outlook came as Lululemon reported a $57.3-million profit in its latest quarter as it grew revenue by 37 per cent.
Vancouver-based Lululemon said it earned 39 cents per diluted share in the third quarter, up from $38.8 million or 27 cents per diluted share a year ago. Revenue amounted to $316.5 million for the quarter ended Oct. 28, up from $230.2 million.
"I am very proud of the team for achieving yet another strong quarter coming in ahead of our expectations," Lululemon chief executive Christine Day said in a statement.
"Our stellar results were driven by first-rate execution, strong community engagement, beautiful product and continued strength in our e-commerce business."
During the third quarter, Lululemon opened 12 stores to bring its total to 201 locations.
Last month, Lululemon settled a patent infringement case against Calvin Klein and its manufacturer that claimed they copied a specific overlapping style of waistband. Terms of the deal were not disclosed, but Lululemon said the lawsuit will be dismissed as a result.
Shares in Lululemon were up $2.13 at $70.17 in trading on the Toronto Stock Exchange.
Read more Business News
- Missing snowmobilersCentral Okanagan - 7:35 am
- Grow-op garage fireKelowna - 7:48 am
- New liquor laws lift Okanagan spiritsKelowna - 5:00 am
- 'Spiderman' arsonist gets jail timeKelowna
|QHR Technologies Inc||1.18||+0.02|
|Anavex Life Sciences||0.42||-0.018|
|Copper Mountain Mining||2.20||-0.09|
|Sunrise Resources Ltd||0.035||+0.005|
|Mission Ready Services||0.295||0.00|
How will you pay for this today? Maybe it’s time to change the way you answer this common checkout question.With more payment options than ever, consumers can find easy ways to save money, simpl...
In the razzle dazzle of Hollywood it is hard to find anyone who stands out from the crowd. The fraternity of Actors, Producers, Directors and various other technical guru’s seem to live in a wo...
This past Sunday I drove from Kelowna to Powell River. For those of you who’ve never had to, particularly in winter, it means rising in the wee hours; managing a treacherous journey on the Coqui...