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Lululemon stretches presence
The Canadian Press September 9, 2012 Lululemon Athletica Inc. plans to continue expansion into international markets with its yoga and running apparel and won't shift its brand to fashion wear, CEO Christine Day said Friday.
"Looking ahead, we are excited about the opportunity to bring Lululemon to other communities around the globe and are continuing our steady foray into the international market," Day said after the company reported a big increase in quarterly profit.
Vancouver-based Lululemon plans to open 35 corporate-owned stores plus two outlets in fiscal 2012, while noting its e-commerce business is growing rapidly as well. Day said a London showroom has opened and a second Hong Kong showroom is expect to open in a month.
Lululemon shares shot up 12.4 per cent, gaining $8.54, to close at $77.44 Friday on the Toronto Stock Exchange.
Lululemon operates in Canada, the U.S. and Asia. Day didn't name any specific locations but said expansion will be through "direct control and ownership where it makes sense."
While the company's clothing has wide appeal, Day said Lululemon will remain committed to athletic apparel.
"I want to be really clear we aren't shifting the brand to fashion," she said on a conference call. "What we believe we do better than anyone in the world is create such a beautiful athletic product that it can be used for multipurpose."
In its second-quarter results, Lululemon said net earnings were $57.2 million or 39 cents per share in the three months ended July 29.
That compared with net earnings of $38.4 million or 26 cents per share in the second quarter of fiscal 2011.
The boost in profit came as Lululemon reported a rise in revenue of 33 per cent in the period to $282.6 million from $212.3 million in the same quarter of fiscal 2011.
Lululemon opened its first store in 1998 in Vancouver and has expanded to 137 stores in the past decade.