Lululemon Athletica inc. (NASDAQ:LULU) reported that net revenue in 2Q2015 jumped 16% to $453 million from $390.7 million in the same period, a year earlier. The total comparable sales surged 11% in 2Q on a constant dollar basis. It covered direct sales as well as comparable store sales to consumer.
Lululemon Athletica reported that comparable store sales jumped by 6% on a constant dollar basis whereas direct to consumer revenue surged 35% on a constant dollar basis. However, the direct to consumer net sales surged 30% to $82.2 million in the second quarter of FY2015. The gross profit gained by 7% to $212 million. As a percentage of net sales gross profit, it came at 46.8% in 2Q2015 compared to 50.5% in 2Q2014.
The management view
Laurent Potdevin, the CEO of Lululemon, said that the company surpassed revenue targets in 2Q2015, supported by robust performance from both e-commerce and store channels. Talking about the remaining quarters, the CEO aid that the team is laser focused on fulfilling strategic key goals. These include increasing of global collective, innovating product lines and creating transformational experiences for company’s guests.
Mr. Potdevin added that as momentum continues to grow, Lululemon team is thrilled with the progress achieved with international expansion, successful brand-building global events and the introduction of new women’s pant wall. In 2Q2015, income from operations dropped 2% to $66.6 million, and in terms of net revenue percentage came at 14.7% against 17.4% of net revenue in 2Q2014.
Lululemon Athletica inc. (NASDAQ:LULU) reported that the effective tax rate came at 29.3% against 30.1% in the same quarter of FY2014. The diluted earnings came at $0.34 per share on net income of nearly $47 million, against diluted earnings of $0.33 per share on net income of $48.7 million in 2Q2014. During 2Q2015, the company re-bought 1 million shares of its common stock at an average price of $63.96 per share.