Lululemon athletica announced financial results for the fourth quarter and fiscal year ended February 1, 2015. Net revenue for Q4 increased 16% to $602.5 million from $52 million in the fourth quarter of fiscal 2013.
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Total comparable sales, which includes comparable store sales and direct to consumer, increased by 8% for the fourth quarter on a constant dollar basis.
Comparable store sales for the fourth quarter increased by 5% on a constant dollar basis and direct to consumer net revenue increased 20% on a constant dollar basis.
Direct to consumer net revenue increased 17% to $114.5 million, or 19.0% of total company net revenue, in the fourth quarter of fiscal 2014, an increase from 18.8% of total company net revenue in the fourth quarter of fiscal 2013.
Gross profit for the quarter increased by 11% to $310.0 million, and as a percentage of net revenue gross profit was 51.5% for the quarter compared to 53.5% in the fourth quarter of fiscal 2013.
Income from operations for the quarter increased by 2% to $157.2 million, and as a percentage of net revenue was 26.1% compared to 29.6% of net revenue in the fourth quarter of fiscal 2013.
The effective tax rate for the quarter was 30.3% compared to 29.5% the fourth quarter of fiscal 2013.
Diluted earnings per share for the quarter were $0.78 on net income of $110.9 million, compared to diluted earnings per share of $0.75 on net income of $109.7 million in the fourth quarter of fiscal 2013.
During the fourth quarter of fiscal 2014, the company repurchased 0.4 million shares of the company's common stock at an average cost of $43.30 per share.
For the fiscal year
Net revenue for the fiscal year increased 13% to $1.8 billion from $1.6 billion in fiscal 2013. Total comparable sales increased by 3% for fiscal 2014 on a constant dollar basis.
Comparable store sales decreased 1% on a constant dollar basis for fiscal 2014 and direct to consumer net revenue increased 24% on a constant dollar basis. Our corporate-owned stores open at least one year averaged sales of $1,678 per square foot.
Direct to consumer net revenue increased 22% to $321.2 million, or 17.9% of total company net revenue in fiscal 2014, an increase from 16.5% of total company net revenue in fiscal 2013.
Gross profit for fiscal 2014 increased by 9% to $914.2 million, from $840.1 million in fiscal 2013, and as a percentage of net revenue was 50.9% compared to 52.8% in fiscal 2013.
Income from operations for fiscal 2014 decreased by 4% to $376.0 million, from $391.4 million in fiscal 2013. As a percentage of net revenue, income from operations decreased to 20.9% compared to 24.6% of net revenue in fiscal 2013.
Tax expense for fiscal 2014 was $144.1 million, which included $33.7 million related to the repatriation of foreign earnings that will be used to fund the share buyback program. The tax rate excluding the $33.7 million tax expense on the repatriation of foreign earnings would have been 28.8%, compared to 29.6% a year ago. The tax rate for fiscal 2014, including the tax expense on the repatriation of foreign earnings, was 37.6%.
Excluding the tax expense on the repatriation of foreign earnings, diluted earnings per share were $1.89 for fiscal 2014. Including the tax expense on the repatriation of foreign earnings, diluted earnings per share for fiscal 2014 were $1.66, which included a $0.23 per share impact from the tax expense on the repatriation of foreign earnings.
During fiscal 2014, the company repurchased 3.7 million shares of the company's common stock at an average cost of $40.31 per share. ■