Lululemon athletica announced financial results for the third quarter ended November 1, 2015. Net revenue increased 14% to $479.7 million from $419.4 million in Q3 2014.
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Total comparable sales, which includes comparable store sales and direct to consumer, increased by 9% for the third quarter on a constant dollar basis.
Comparable store sales for the third quarter increased by 6% on a constant dollar basis and direct to consumer revenue increased 21% on a constant dollar basis.
Direct to consumer net revenue increased 16% to $89.3 million, or 18.6% of total company revenue, in the third quarter of fiscal 2015, an increase from 18.4% of total company revenues in the third quarter of fiscal 2014.
Gross profit for the quarter increased by 7% to $224.8 million, and as a percentage of net revenue gross profit was 46.9% for the quarter compared to 50.3% in the third quarter of fiscal 2014.
Income from operations for the quarter decreased by 16% to $68.2 million, and as a percentage of net revenue was 14.2% compared to 19.4% of net revenue in the third quarter of fiscal 2014.
The income tax expense for the third quarter of fiscal 2015 was $12.1 million, which includes an income tax recovery of $7.7 million related to the company's transfer pricing arrangements and taxes associated with the repatriation of foreign earnings.
In addition, there was a related net interest expense of $3.6 million. The tax rate excluding these adjustments was 28.8% in the third quarter of fiscal 2015 compared to 27.1% in the third quarter of fiscal 2014.
The effective tax rate in the third quarter of fiscal 2015 including these tax and related interest adjustments was 18.6%.
Diluted earnings per share for the third quarter of fiscal 2015 were $0.38 compared to $0.42 in the third quarter of fiscal 2014.
Excluding tax and related interest adjustments, diluted earnings per share were $0.35 for the third quarter of fiscal 2015.
During the third quarter of fiscal 2015, the company repurchased 1.6 million shares of the company's common stock at an average cost of $55.50 per share. ■