Lululemon Athletica Inc. (NASDAQ: LULU), the yoga pants maker, announced the fourth quarter financial results on Wednesday morning. Shares of Lululemon jumped up 9.41% to $67 during morning trading.
Laurent Potdevin, lululemon's CEO, stated: "I'm very pleased with our strong finish to the year with positive momentum across all channels. Our Q4 results are a reflection of our ability to deliver a truly unique experience to our guests, led, as always, by our outstanding store educators. In 2015, we made bold moves across the organization, elevating design and innovation and developing our infrastructure to position us for the future. As I look forward to 2016 and beyond, I am excited and confident that we have the right team in place to execute on our long term strategies."
According to the fourth quarter financial results, net revenue rose 17% to $704.3 million compared with $602.5 million in the same quarter last year. Net income increased 6% to approximately $117.4 million from last year almost $110.9 million. Diluted earnings per share up 9% from last year $0.78 to this quarter $0.85.
Lululemon outlook for next quarter that net revenue to be range of $483 million to $488 million, and diluted earnings per share expected to be range of $0.28 to $0.30. During the conference, the company announced it's placing a sharper focus on digital channels and international expansion. Those investments explain in part the 2016 guidance from Lululemon that came in below expectations.
For the whole year of 2016, the company expects diluted earnings per share to be range of $2.05 to $2.15 and projected estimated revenue in the range of $2.29 billion to $2.34 billion, with same-store sales up in the mid-single digits on a constant-dollar basis. Analysts were estimating diluted earnings per share of $2.16 and total revenue of $2.32 billion.