Dampened consumer demand, a weaker Canadian dollar and a $4.4 million real estate impairment charge pushed Lululemon Athletica Inc.’s fourth-quarter earnings down 25.1 percent.
This story first appeared in the March 27, 2009 issue of WWD. Subscribe Today.
For the three months ended Feb. 1, net income fell to $10.9 million, or 16 cents a diluted share, from $14.6 million, or 21 cents, the company said after the market closed Thursday.
Sales for the quarter dipped slightly to $103.9 million from $104 million.
For the full year, earnings climbed 27.6 percent to $39.4 million, or 55 cents a diluted share, from $30.8 million, or 48 cents. Annual revenues increased 30.9 percent to $353.5 million from $269.9 million.
“Looking at 2009, we will continue to be focused on selective use of capital and generating positive cash flow as we position ourselves to respond quickly to changes in the macroenvironment,” said chief executive officer Christine Day.
Limiting its guidance to the current quarter, the Vancouver-based activewear company projected same-store sales would decline low-double digits on a constant dollar basis, with revenue between $70 million and $75 million and earnings per share ranging from 7 to 8 cents.
Finishing the year with 113 stores, after adding 34 stores last year, the company reviewed its real estate portfolio, choosing not to open three planned stores and potentially closing three existing stores. The company plans to add six stores in fiscal 2009, launch e-commerce early next month, and add wholesale in Canada in June. Day said the company plans to reallocate the inventory from planned stores to e-commerce.