LULULEMON ATHLETICA INC. ANNOUNCES FOURTH QUARTER
AND FULL YEAR FISCAL 2020 RESULTS
Fourth quarter revenue increased 24% to $1.7 billion
Comparable sales increased 21%, or 20% on a constant dollar basis
Diluted EPS of $2.52, Adjusted EPS of $2.58
Vancouver, British Columbia - March 30, 2021 - lululemon athletica inc. (NASDAQ:LULU) today announced financial results for the fourth quarter and fiscal year ended January 31, 2021.
Calvin McDonald, Chief Executive Officer, stated: "I'm proud of how we navigated this past year and delivered for our employees, guests and shareholders. Our continued growth demonstrates the strength of lululemon -- before, during and as the pandemic subsides. We are still in the early innings of our growth, fueled by exciting innovations that create even more opportunity into the future. All of us on the leadership team have so much gratitude for our teams and their agility during these unprecedented times."
We refer to the fiscal year ended January 31, 2021 as "2020" and the fiscal year ended February 2, 2020 as "2019." The adjusted non-GAAP financial measures below exclude certain costs incurred in connection with the acquisition of MIRROR, and the related tax effects.
For the fourth quarter of 2020, compared to the fourth quarter of 2019:
•Net revenue increased 24% to $1.7 billion. On a constant dollar basis, net revenue increased 22%.
–Net revenue increased 21% in North America and increased 47% internationally.
•Total comparable sales increased 21%, or increased 20% on a constant dollar basis.
–Direct to consumer net revenue increased 94%, or increased 92% on a constant dollar basis.
–Comparable store productivity was 72%, or 71% on a constant dollar basis, representing a comparable store sales decrease of 28%, or a decrease of 29% on a constant dollar basis.
•Direct to consumer net revenue represented 52% of total net revenue compared to 33% for the fourth quarter of 2019.
•Gross profit increased 25% to $1.0 billion, and gross margin increased 60 basis points to 58.6%.
•Income from operations increased 10% to $457.9 million. Adjusted income from operations increased 12% to $465.7 million.
•Operating margin decreased 330 basis points to 26.5%. Adjusted operating margin decreased 290 basis points to 26.9%.
•Income tax expense increased 5% to $127.2 million. The effective tax rate for the fourth quarter of 2020 was 27.8% compared to 28.8% for the fourth quarter of 2019. The adjusted effective tax rate was 27.4% for the fourth quarter of 2020.
•Diluted earnings per share were $2.52 compared to $2.28 in the fourth quarter of 2019. Adjusted diluted earnings per share for the fourth quarter of 2020 were $2.58.
•The Company opened six net new company-operated stores during the quarter, ending with 521 stores.
For 2020 compared to 2019:
•Net revenue increased 11% to $4.4 billion. On a constant dollar basis, net revenue increased 10%.
–Direct to consumer net revenue increased 101%, and increased 101% on a constant dollar basis.
–Company operated store net revenue decreased 34%.
–Net revenue increased 8% in North America and increased 31% internationally.
•Direct to consumer net revenue represented 52% of total net revenue compared to 29% for 2019.
The following information was filed by Lululemon Athletica Inc. (LULU) on Tuesday, March 30, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.