New Lululemon CEO Laurent Potdevin said 2014 is a year for investing, strengthening the company’s foundation, reigniting its product engine and accelerating sustainable and controlled global expansion.
"In my first days as CEO, I have been inspired by the people at Lululemon, and the passion that lies behind our product and our brand," said Potdevin. "As we move into 2014, we are reflecting on our learnings with humility, and are entirely focused on our future. Lululemon's magic has been built by creating technical beautiful product and sharing our distinct culture with our communities. The emotional connection that Lululemon creates is at the heart of what we stand for, and we are being relentless in our commitment to delivering a distinct and authentic experience that is unlike any other."
The company reported a net revenue increase in the fourth quarter ended Feb. 2 of 7% to $521 million from $485.5 million in last year’s fourth quarter. This year’s fourth quarter had one fewer week than last year’s.
Comparable stores sales for the fourth quarter decreased by 2%. Total comparable sales, including not only comparable stores but also direct to consumer, increased 4% for the quarter.
Direct to consumer revenue increased 25% to $97.8 million, or 18.8% of total company revenues, in the quarter, representing an increase from 16.1% of total company revenues in the fourth quarter of fiscal 2012.
Looking ahead, the company expects net revenue in the first quarter to be in the range of $377 million to $382 million based on flat total combined comparable sales on a constant dollar basis.