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.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast