Lululemon Athletica Inc. reported Thursday that third-quarter earnings more than tripled, continuing its growth trajectory since going public last summer, and the yogawear company raised its guidance for 2007.
For the three months ended Oct. 31, Lululemon said net income increased to $7.6 million, or 11 cents a diluted share, from $1.7 million, or 2 cents, in the same period in 2006.
Sales for the period climbed 84 percent to $66.1 million from $36 million, propelled by 27 new store openings and strong same-store sales in existing units. Lululemon has opened eight stores in the month since the quarter ended and plans to open three more in the fourth quarter, then 30 to 35 stores in fiscal 2008.
For the first nine months of the fiscal year, earnings increased 139 percent to $16.2 million from $6.8 million. Sales for the first three quarters grew 75 percent to $169.6 million from $96.7 million.
The Vancouver-based company also raised its guidance for 2007 to 40 cents to 42 cents a diluted share, up from 30 cents to 33 cents previously, assuming same-store sales growth of 20 percent or more annually.
Lululemon launched an initial public offering in July that raised $327.6 million, and shares are trading at more than double the $18 offer price. The stock was up $1.04 on Thursday to close at $41.54.
During a conference call, company executives said a controversy over the VitaSea line had not damaged purchases of the line, which represents about 1 percent of total sales. The New York Times reported this month that the VitaSea line did not appear to contain the seaweed benefits promoted on its educational tags and content label. The newspaper said it got a tip from a Lululemon investor, who was shorting the stock, and commissioned a separate lab test to compare the contents of a cotton J. Crew T-shirt with a VitaSea-line shirt. The test confirmed no significant difference in mineral levels but could not rule out the presence of seaweed entirely. The company has removed the health benefits claims from VitaSea tags.
"We stand behind the integrity of our product and processes, including VitaSea," Bob Meers, Lululemon chief executive officer, said on the call.
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)
@Pharrell and his wife Helen Lasichanh were among the stars that came out to celebrate @rimowa’s first pop-up concept shop. The space, which is located on Rodeo Drive in Beverly Hills, draws inspiration from airport luggage carousels and lounge areas – and features the company’s luggage and accessories. If the pop-up is successful it could pave the way for addition temporary shops throughout the world. #wwdfashion (📷: Owen Kolasinski/BFA)
@carineroitfeld celebrated @crfashionbook’s first calendar last night with a dinner party at Spring Place in Manhattan. Photographed by @stevenkleinstudio, the calendar takes on a fitness theme and features @joansmalls, @gigihadid, @danielle_herrington_ – pictured here – and more. “[Carine Roitfeld] wanted me to feel sexy and she wanted me to be myself and feel it out on my own and do what I felt was right,” said Herrington, aka Miss October. #wwdeye
@saintrecords and @virgilabloh last night at @americanexpress’ “A Night With Success Makers” event. “I always bring it back to community because without that I wouldn’t have the courage,” said Knowles when asked how she has gotten where she is now. Read more highlights from their conversation on WWD.com. #wwdeye (📷: @lizdoupnik)
This Just In: Industry sources have told WWD that Anastasia Soare is rumored to be considering selling her beauty business, @anastasiabeverlyhills. According to those sources, Soare has tapped investment bank Imperial Capital to explore sale options for her eponymous beauty brand –– and with at least $340 million in net sales, this would be a big deal. Put in context of other recent transactions for makeup companies, Soare’s price tag could be in the billions if she were to sell the whole thing. #wwdnews #wwdbeauty (📷: @clint_spaulding)
@assouline’s latest book, “The Spirit of Bentley: Be Extraordinary” captures the adventurous attitudes and opulent lifestyles of @bentleymotors’ most creative owners and enthusiasts throughout the U.K. The 292-page hardcover has a section dedicated to showing its team of skilled artisans and photos of its most colorful owners, from George Bamford to designer @alicetemperley, pictured here by Aline Coquelle. #wwdeye
@google released its report on the most popular search terms this year. For fashion brands, the list was led by @gucci, the luxury brand that stunned the market last October when it pledged to stop using fur. Runner ups were @supremenewyork and @fashionnova, along with more established brands like @louisvuitton, @chanelofficial and @ysl. #wwdfashion (📷: @aitorrosasphoto)
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)