Dominion Lending Centres Clearlease Reports Lululemon (TSX:LLL) turns online for growth as in-store demand outruns supply
VANCOUVER, BC (June 10, 2011) Dominion Lending Centres Clearlease Reports Lululemon Athletica Inc. (TSX:LLL) is focusing on building its online presence after in-store demand for athletic apparel outran supply in Q1 and profits soared above expectations for the fifth consecutive quarter.
The Vancouver-based retailer said Friday June 10, 2011 that it completed a massive overhaul of its e-commerce site during the latest quarter and plans to ramp up its online presence through social media, web advertising and mobile applications.
“Our online store inventory will be in a good position to support a strong back half of the year,” Lululemon’s president and CEO Christine Day said on a conference call with analysts Friday.
The retailer has spent recent months switching management of its web operations from a third-party to a new in-house team as online sales become a bigger part of its growth strategy. It expects web sales to make up about 10 per cent of revenue this year, and believes they’ll reach 15 per cent or more of total sales in the near term.
The retailer sees its website as an avenue to reach more consumers than it can through its 142 stores in Canada, the U.S. and Australia, as well as offer an array of products that it is unable to display in its small, boutique-style stores.
“We can carry product lines a little bit longer, we can bring back the classics — there’s so many things we can do, like line extensions, that we don’t have the opportunity to do because of the size of our stores,” Day said.
The popularity of Lululemon yoga and run apparel is already well-established in Canada and is growing south of the border — a phenomenon that has been reflected in quarterly results that have soared past expectations for more than a year.
Stronger sales of its yoga apparel helped turn an improved first-quarter profit of $33.5 million, or 46 cents per share. That beat predictions of 38 cents per share, according to a survey of analysts by Thomson Reuters, and was also ahead of the $19.6-million profit it reported a year earlier.
The company said it expects second-quarter revenues in the range of $200 million to $205 million, or 42 to 44 cents per share. It also increased its full-year sales forecast to target $915 million to $930 million, or $2.10 to $2.16 a share.
Its shares gained 3.6 per cent or $3.92 to $87.82 in midday trading Friday on the Toronto Stock Exchange . The stock price has doubled in the past year and hit a 52-week high of $97.99 in April.
Despite the stronger first-quarter profit, growth was more sluggish than in previous quarters, when the retailer had reported revenues that doubled, but the slowdown had been expected.
The company had telegraphed in its last quarterly results that supply chain issues could restrain profits in the opening months of 2011.
The company’s rising popularity has also created supply issues in its stores, where its body hugging pants, shorts and tops fly off the shelves faster than inventory can be restocked.
Lululemon shares had been beaten down somewhat in recent weeks after the Canadian fashion retailer was downgraded by an analyst ahead of the company’s earnings as concerns mounted about the company’s inability to match its inventory levels with demand.
“Given our inventory constraints combined with our focus on transitioning our e-commerce platform, we approached the plan for the first quarter conservatively,” Day said Friday.
However, the Vancouver-based company said revenue increased to $186.8 million from $138.3 million as comparable-store sales were up 16 per cent in the three-month period. A strong Canadian dollar helped boost revenues by $4.3 million or 3.1 per cent.
Breaking down the results, Day said February sales were strong, but that inventory constraints held back sales in March. By April, inventory started to be replenished and Day said the company is now in a better position headed into the second quarter, but warned that inventory flow is “still less than optimal.”
During the first quarter, the company opened three stores in the U.S., and one in Australia. It has 142 stores in its network compared with 128 a year ago, the majority of which are located in the U.S.
While about three per cent of the chain’s online sales come from shoppers outside of North America, the company says it would be premature to roll out an international expansion strategy because it still has work to do to shore up business in North America.
Lululemon said sales in its most recently opened stores in the U.S. exceeded expectations and performed at a level most stores are expected to hit in their third year of operation. It said U.S. sales are now catching up those reported in Canada.
The company is also working on expanding its Ivivva children’s line and shoring up sales of its men’s line, which has been performing better in the U.S. where Lululemon was rolled out as a unisex chain. Lululemon began in Canada as a women’s brand, opening its first story in Vancouver in 1998.
Day said the chain is also testing the option of entering the cycling wear market as spinning classes become a growing trend and people use bikes more for commuting. But, she added, its in no hurry to develop the line as a path to grow sales.
“We want to keep some innovation back to drive that future growth and we also don’t want to be distracted from what we believe are the two biggest growth categories (yoga and run),” she said.
On Thursday, shareholders approved a two-for-one split of the company’s stock. The post-split shares are expected to begin trading on the Nasdaq market in New York under the symbol ( Nasdaq :LULU) and on the Toronto Stock Exchange around end of June.
After the split, Lululemon will have about 108 million shares issued and outstanding.
Dominion Lending Centres Clearlease Video Link: http://youtu.be/f_kk7WJa7Uk
For more information please visit us at: http://www.clearlease.com/Career-Opportunities.html
About Dominion Lending Centres Clearlease
Dominion Lending Centres Clearlease Commercial (DLC Clearlease/Clearlease.com) is a fully diversified Lease Finance Mortgage Banking Brokerage Company specializing in Equipment Leasing, Automobile Leasing, Residential, Commercial Lending/Mortgage Financing. DLC Clearlease possesses the capability to accommodate financing needs ranging from a small second Home Mortgage to a Multi-Million Dollar Commercial Projects. No mortgage is too small or too large for this integrated Company.
Equipment Lease Financing in Vancouver, Surrey, Delta, Richmond, Langley, New Westminster, North Vancouer, West Vancouver, B.C. Also offering Automobile Lease Financing and Mortgage information. Founded by the Pidgeon brothers.
You may have recently seen a Dominion Lending advertisement on such media outlets as: Global News, CTV News, CBC Television, Rogers Sportsnet or possibly heard the great Don Cherry, a Canadian Sports legend, discuss Dominion Lending Centres.
Contact DLC Clearlease.com:
Dominion Lending Centres Clearlease
HEAD OFFICE, Bentall Two, Suite 900, 555 Burrard Street, Vancouver, BC, V7X 1M8, CANADA.
Mr. Alexander Pidgeon, Editor in Chief
Tel: (604) 696-1221 ext. 199
eMail: [email protected]
Website: http://www.clearlease.com
News: http://clearlease.com/category/equipment-lease-blog/feed/rss
Twitter: @clearlease
###
Video Link: http://youtu.be/f_kk7WJa7Uk
VANCOUVER, BC (June 10, 2011) Dominion Lending Centres Clearlease Reports Lululemon Athletica Inc. (TSX:LLL) is focusing on building its online presence after in-store demand for athletic apparel outran supply in Q1 and profits soared above expectations for the fifth consecutive quarter.
The Vancouver-based retailer said Friday June 10, 2011 that it completed a massive overhaul of its e-commerce site during the latest quarter and plans to ramp up its online presence through social media, web advertising and mobile applications.
“Our online store inventory will be in a good position to support a strong back half of the year,” Lululemon’s president and CEO Christine Day said on a conference call with analysts Friday.
The retailer has spent recent months switching management of its web operations from a third-party to a new in-house team as online sales become a bigger part of its growth strategy. It expects web sales to make up about 10 per cent of revenue this year, and believes they’ll reach 15 per cent or more of total sales in the near term.
The retailer sees its website as an avenue to reach more consumers than it can through its 142 stores in Canada, the U.S. and Australia, as well as offer an array of products that it is unable to display in its small, boutique-style stores.
“We can carry product lines a little bit longer, we can bring back the classics — there’s so many things we can do, like line extensions, that we don’t have the opportunity to do because of the size of our stores,” Day said.
The popularity of Lululemon yoga and run apparel is already well-established in Canada and is growing south of the border — a phenomenon that has been reflected in quarterly results that have soared past expectations for more than a year.
Stronger sales of its yoga apparel helped turn an improved first-quarter profit of $33.5 million, or 46 cents per share. That beat predictions of 38 cents per share, according to a survey of analysts by Thomson Reuters, and was also ahead of the $19.6-million profit it reported a year earlier.
The company said it expects second-quarter revenues in the range of $200 million to $205 million, or 42 to 44 cents per share. It also increased its full-year sales forecast to target $915 million to $930 million, or $2.10 to $2.16 a share.
Its shares gained 3.6 per cent or $3.92 to $87.82 in midday trading Friday on the Toronto Stock Exchange . The stock price has doubled in the past year and hit a 52-week high of $97.99 in April.
Despite the stronger first-quarter profit, growth was more sluggish than in previous quarters, when the retailer had reported revenues that doubled, but the slowdown had been expected.
The company had telegraphed in its last quarterly results that supply chain issues could restrain profits in the opening months of 2011.
The company’s rising popularity has also created supply issues in its stores, where its body hugging pants, shorts and tops fly off the shelves faster than inventory can be restocked.
Lululemon shares had been beaten down somewhat in recent weeks after the Canadian fashion retailer was downgraded by an analyst ahead of the company’s earnings as concerns mounted about the company’s inability to match its inventory levels with demand.
“Given our inventory constraints combined with our focus on transitioning our e-commerce platform, we approached the plan for the first quarter conservatively,” Day said Friday.
However, the Vancouver-based company said revenue increased to $186.8 million from $138.3 million as comparable-store sales were up 16 per cent in the three-month period. A strong Canadian dollar helped boost revenues by $4.3 million or 3.1 per cent.
Breaking down the results, Day said February sales were strong, but that inventory constraints held back sales in March. By April, inventory started to be replenished and Day said the company is now in a better position headed into the second quarter, but warned that inventory flow is “still less than optimal.”
During the first quarter, the company opened three stores in the U.S., and one in Australia. It has 142 stores in its network compared with 128 a year ago, the majority of which are located in the U.S.
While about three per cent of the chain’s online sales come from shoppers outside of North America, the company says it would be premature to roll out an international expansion strategy because it still has work to do to shore up business in North America.
Lululemon said sales in its most recently opened stores in the U.S. exceeded expectations and performed at a level most stores are expected to hit in their third year of operation. It said U.S. sales are now catching up those reported in Canada.
The company is also working on expanding its Ivivva children’s line and shoring up sales of its men’s line, which has been performing better in the U.S. where Lululemon was rolled out as a unisex chain. Lululemon began in Canada as a women’s brand, opening its first story in Vancouver in 1998.
Day said the chain is also testing the option of entering the cycling wear market as spinning classes become a growing trend and people use bikes more for commuting. But, she added, its in no hurry to develop the line as a path to grow sales.
“We want to keep some innovation back to drive that future growth and we also don’t want to be distracted from what we believe are the two biggest growth categories (yoga and run),” she said.
On Thursday, shareholders approved a two-for-one split of the company’s stock. The post-split shares are expected to begin trading on the Nasdaq market in New York under the symbol ( Nasdaq :LULU) and on the Toronto Stock Exchange around end of June.
After the split, Lululemon will have about 108 million shares issued and outstanding.
Dominion Lending Centres Clearlease Video Link: http://youtu.be/f_kk7WJa7Uk
For more information please visit us at: http://www.clearlease.com/Career-Opportunities.html
About Dominion Lending Centres Clearlease
Dominion Lending Centres Clearlease Commercial (DLC Clearlease/Clearlease.com) is a fully diversified Lease Finance Mortgage Banking Brokerage Company specializing in Equipment Leasing, Automobile Leasing, Residential, Commercial Lending/Mortgage Financing. DLC Clearlease possesses the capability to accommodate financing needs ranging from a small second Home Mortgage to a Multi-Million Dollar Commercial Projects. No mortgage is too small or too large for this integrated Company.
Equipment Lease Financing in Vancouver, Surrey, Delta, Richmond, Langley, New Westminster, North Vancouer, West Vancouver, B.C. Also offering Automobile Lease Financing and Mortgage information. Founded by the Pidgeon brothers.
You may have recently seen a Dominion Lending advertisement on such media outlets as: Global News, CTV News, CBC Television, Rogers Sportsnet or possibly heard the great Don Cherry, a Canadian Sports legend, discuss Dominion Lending Centres.
Contact DLC Clearlease.com:
Dominion Lending Centres Clearlease
HEAD OFFICE, Bentall Two, Suite 900, 555 Burrard Street, Vancouver, BC, V7X 1M8, CANADA.
Mr. Alexander Pidgeon, Editor in Chief
Tel: (604) 696-1221 ext. 199
eMail: [email protected]
Website: http://www.clearlease.com
News: http://clearlease.com/category/equipment-lease-blog/feed/rss
Twitter: @clearlease
###
Video Link: http://youtu.be/f_kk7WJa7Uk
Dominion Lending Centres Clearlease Reports Lululemon (TSX:LLL) turns online for growth as in-store demand outruns supply
VANCOUVER, BC (June 10, 2011) Dominion Lending Centres Clearlease Reports Lululemon Athletica Inc. (TSX:LLL) is focusing on building its online presence after in-store demand for athletic apparel outran supply in Q1 and profits soared above expectations for the fifth consecutive quarter.
The Vancouver-based retailer said Friday June 10, 2011 that it completed a massive overhaul of its e-commerce site during the latest quarter and plans to ramp up its online presence through social media, web advertising and mobile applications.
“Our online store inventory will be in a good position to support a strong back half of the year,” Lululemon’s president and CEO Christine Day said on a conference call with analysts Friday.
The retailer has spent recent months switching management of its web operations from a third-party to a new in-house team as online sales become a bigger part of its growth strategy. It expects web sales to make up about 10 per cent of revenue this year, and believes they’ll reach 15 per cent or more of total sales in the near term.
The retailer sees its website as an avenue to reach more consumers than it can through its 142 stores in Canada, the U.S. and Australia, as well as offer an array of products that it is unable to display in its small, boutique-style stores.
“We can carry product lines a little bit longer, we can bring back the classics — there’s so many things we can do, like line extensions, that we don’t have the opportunity to do because of the size of our stores,” Day said.
The popularity of Lululemon yoga and run apparel is already well-established in Canada and is growing south of the border — a phenomenon that has been reflected in quarterly results that have soared past expectations for more than a year.
Stronger sales of its yoga apparel helped turn an improved first-quarter profit of $33.5 million, or 46 cents per share. That beat predictions of 38 cents per share, according to a survey of analysts by Thomson Reuters, and was also ahead of the $19.6-million profit it reported a year earlier.
The company said it expects second-quarter revenues in the range of $200 million to $205 million, or 42 to 44 cents per share. It also increased its full-year sales forecast to target $915 million to $930 million, or $2.10 to $2.16 a share.
Its shares gained 3.6 per cent or $3.92 to $87.82 in midday trading Friday on the Toronto Stock Exchange . The stock price has doubled in the past year and hit a 52-week high of $97.99 in April.
Despite the stronger first-quarter profit, growth was more sluggish than in previous quarters, when the retailer had reported revenues that doubled, but the slowdown had been expected.
The company had telegraphed in its last quarterly results that supply chain issues could restrain profits in the opening months of 2011.
The company’s rising popularity has also created supply issues in its stores, where its body hugging pants, shorts and tops fly off the shelves faster than inventory can be restocked.
Lululemon shares had been beaten down somewhat in recent weeks after the Canadian fashion retailer was downgraded by an analyst ahead of the company’s earnings as concerns mounted about the company’s inability to match its inventory levels with demand.
“Given our inventory constraints combined with our focus on transitioning our e-commerce platform, we approached the plan for the first quarter conservatively,” Day said Friday.
However, the Vancouver-based company said revenue increased to $186.8 million from $138.3 million as comparable-store sales were up 16 per cent in the three-month period. A strong Canadian dollar helped boost revenues by $4.3 million or 3.1 per cent.
Breaking down the results, Day said February sales were strong, but that inventory constraints held back sales in March. By April, inventory started to be replenished and Day said the company is now in a better position headed into the second quarter, but warned that inventory flow is “still less than optimal.”
During the first quarter, the company opened three stores in the U.S., and one in Australia. It has 142 stores in its network compared with 128 a year ago, the majority of which are located in the U.S.
While about three per cent of the chain’s online sales come from shoppers outside of North America, the company says it would be premature to roll out an international expansion strategy because it still has work to do to shore up business in North America.
Lululemon said sales in its most recently opened stores in the U.S. exceeded expectations and performed at a level most stores are expected to hit in their third year of operation. It said U.S. sales are now catching up those reported in Canada.
The company is also working on expanding its Ivivva children’s line and shoring up sales of its men’s line, which has been performing better in the U.S. where Lululemon was rolled out as a unisex chain. Lululemon began in Canada as a women’s brand, opening its first story in Vancouver in 1998.
Day said the chain is also testing the option of entering the cycling wear market as spinning classes become a growing trend and people use bikes more for commuting. But, she added, its in no hurry to develop the line as a path to grow sales.
“We want to keep some innovation back to drive that future growth and we also don’t want to be distracted from what we believe are the two biggest growth categories (yoga and run),” she said.
On Thursday, shareholders approved a two-for-one split of the company’s stock. The post-split shares are expected to begin trading on the Nasdaq market in New York under the symbol ( Nasdaq :LULU) and on the Toronto Stock Exchange around end of June.
After the split, Lululemon will have about 108 million shares issued and outstanding.
Dominion Lending Centres Clearlease Video Link: http://youtu.be/f_kk7WJa7Uk
For more information please visit us at: http://www.clearlease.com/Career-Opportunities.html
About Dominion Lending Centres Clearlease
Dominion Lending Centres Clearlease Commercial (DLC Clearlease/Clearlease.com) is a fully diversified Lease Finance Mortgage Banking Brokerage Company specializing in Equipment Leasing, Automobile Leasing, Residential, Commercial Lending/Mortgage Financing. DLC Clearlease possesses the capability to accommodate financing needs ranging from a small second Home Mortgage to a Multi-Million Dollar Commercial Projects. No mortgage is too small or too large for this integrated Company.
Equipment Lease Financing in Vancouver, Surrey, Delta, Richmond, Langley, New Westminster, North Vancouer, West Vancouver, B.C. Also offering Automobile Lease Financing and Mortgage information. Founded by the Pidgeon brothers.
You may have recently seen a Dominion Lending advertisement on such media outlets as: Global News, CTV News, CBC Television, Rogers Sportsnet or possibly heard the great Don Cherry, a Canadian Sports legend, discuss Dominion Lending Centres.
Contact DLC Clearlease.com:
Dominion Lending Centres Clearlease
HEAD OFFICE, Bentall Two, Suite 900, 555 Burrard Street, Vancouver, BC, V7X 1M8, CANADA.
Mr. Alexander Pidgeon, Editor in Chief
Tel: (604) 696-1221 ext. 199
eMail: [email protected]
Website: http://www.clearlease.com
News: http://clearlease.com/category/equipment-lease-blog/feed/rss
Twitter: @clearlease
###
Video Link: http://youtu.be/f_kk7WJa7Uk