Lululemon Profit, Sales Up in Q4

Guarded guidance for the new year didn’t dampen the enthusiasm of investors for Lululemon Athletica Inc., which posted better-than-expected results in the fourth quarter. The Vancouver-based yogawear firm saw shares rise 6.2 percent to $64.71 in early trading on the Nasdaq after it reported that net income in the three months ended Feb. 1 perked up 1.1 percent to $110.9 million, or 78 cents a diluted share, from $109.7 million, or 75 cents, in the final quarter of 2013. On average, analysts had expected EPS of 73 cents. Revenues rose 15.6 percent, to $602.5 million from $521 million, just above the analysts’ consensus estimate of $602.4 million. Comparable sales were up 6 percent, 8 percent at constant currency, including a 2 percent gain in same-store sales, which rose 5 percent at constant currency. Direct-to-consumer revenues were up 17 percent to $114.5 million, accounting for 19 percent of the total versus 18.8 percent in last year’s quarter. “Our solid performance in the fourth quarter builds on the momentum that began in the third quarter and reflects improved traffic and a strong guest response,” said Laurent Potdevin, chief executive officer. Citing improvements in product, guest experience and community engagement, as well as additions to the company’s

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