Wednesday, athletic apparel company Lululemon Athletica Inc. (LULU, LLL) reported an increase in earnings for the third quarter attributable to an increase in revenue. The company's earnings topped analysts' estimates.
Net income for the thirteen weeks increased to $14.06 million or $0.20 per share from $8.83 million or $0.13 per share in the year-ago period. On average, 10 analysts polled by Thomson Reuters estimated earnings of $0.19 per share. Analysts' estimates typically exclude special items.
Net revenue for the quarter increased by 29.7% to $112.89 million from $87.04 million in the prior year period. Nine Wall Street analysts estimated a revenue of $111.24 million.
The company's cost of goods sold for the quarter increased to $56.55 million from $45.15 million year-ago. Selling, general and administrative expenses increased to $35.41 million from $28.83 million in the comparable period year-ago. Other net expenses were $3 thousand, compared with $145 thousand in the year-ago period.
According to the company, comparable store sales on a constant currency basis was 10%, compared with 4% in the year-ago period.
Christine Day, Lululemon's chief executive officer stated, "Sales momentum continued to build in the third quarter as consumers responded to our distinctive product, community connections and in store guest experience." She added that the company made significant progress in improving its gross margin with a return to the 50% level in a challenging retail environment.
Year-to-date net income increased to $29.83 million or $0.42 per share, compared with $28.42 million or $0.40 per share in the year-ago period. The company's year-to-date net revenue increased by 17.1% to $292.29 million from $249.56 million year-ago.
For the fourth quarter of fiscal 2009, the company said that it expects earnings per share to be in the range of $0.26 - $0.28 and net revenue to be in the range of $140 million - $145 million based on a comparable-store sales increase in the mid teens on a constant-dollar basis. Analysts currently expect earnings of $0.27 per share on revenues of $133.73 million for the fourth quarter.
LULU closed Wednesday's trade on the Nasdaq at $27.67, up $0.86 or 3.21%. In the after hours the stock traded up $0.41 or 1.48%.
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