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|
|
|
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
Delaware
|
20-3842867
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
|
|
1818 Cornwall Avenue
Vancouver, British Columbia
|
V6J 1C7
|
(Address of principal executive offices)
|
(Zip Code)
|
|
Large accelerated filer
|
þ
|
Accelerated filer
|
|
o
|
Non-accelerated filer
|
o
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
|
o
|
|
|
|
Page
|
|
|
|
Item 1.
|
||
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 6.
|
||
|
|
|
|
|
May 1,
2016 |
|
January 31,
2016 |
||||
ASSETS
|
||||||||
Current assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
550,046
|
|
|
$
|
501,482
|
|
Accounts receivable
|
|
9,502
|
|
|
13,108
|
|
||
Inventories
|
|
286,230
|
|
|
284,009
|
|
||
Prepaid and receivable income taxes
|
|
92,095
|
|
|
91,453
|
|
||
Other prepaid expenses and other current assets
|
|
33,320
|
|
|
26,987
|
|
||
|
|
971,193
|
|
|
917,039
|
|
||
Property and equipment, net
|
|
377,813
|
|
|
349,605
|
|
||
Goodwill and intangible assets, net
|
|
25,320
|
|
|
24,777
|
|
||
Deferred income tax assets
|
|
13,044
|
|
|
11,802
|
|
||
Other non-current assets
|
|
14,285
|
|
|
10,854
|
|
||
|
|
$
|
1,401,655
|
|
|
$
|
1,314,077
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
||||
Current liabilities
|
|
|
|
|
||||
Accounts payable
|
|
$
|
6,443
|
|
|
$
|
10,381
|
|
Accrued inventory liabilities
|
|
21,901
|
|
|
25,451
|
|
||
Accrued compensation and related expenses
|
|
35,083
|
|
|
43,524
|
|
||
Income taxes payable
|
|
36,892
|
|
|
37,736
|
|
||
Unredeemed gift card liability
|
|
50,387
|
|
|
57,736
|
|
||
Other accrued liabilities
|
|
51,722
|
|
|
50,676
|
|
||
|
|
202,428
|
|
|
225,504
|
|
||
Deferred income tax liabilities
|
|
11,382
|
|
|
10,759
|
|
||
Other non-current liabilities
|
|
51,620
|
|
|
50,332
|
|
||
|
|
265,430
|
|
|
286,595
|
|
||
Stockholders' equity
|
|
|
|
|
||||
Undesignated preferred stock, $0.01 par value: 5,000 shares authorized; none issued and outstanding
|
|
—
|
|
|
—
|
|
||
Exchangeable stock, no par value: 60,000 shares authorized; 9,804 and 9,804 issued and outstanding
|
|
—
|
|
|
—
|
|
||
Special voting stock, $0.000005 par value: 60,000 shares authorized; 9,804 and 9,804 issued and outstanding
|
|
—
|
|
|
—
|
|
||
Common stock, $0.005 par value: 400,000 shares authorized; 127,359 and 127,482 issued and outstanding
|
|
637
|
|
|
637
|
|
||
Additional paid-in capital
|
|
250,799
|
|
|
245,533
|
|
||
Retained earnings
|
|
1,049,430
|
|
|
1,019,515
|
|
||
Accumulated other comprehensive loss
|
|
(164,641
|
)
|
|
(238,203
|
)
|
||
|
|
1,136,225
|
|
|
1,027,482
|
|
||
|
|
$
|
1,401,655
|
|
|
$
|
1,314,077
|
|
|
|
Thirteen Weeks Ended
May 1, 2016 |
|
Thirteen Weeks Ended
May 3, 2015 |
||||
Net revenue
|
|
$
|
495,516
|
|
|
$
|
423,544
|
|
Cost of goods sold
|
|
256,385
|
|
|
217,667
|
|
||
Gross profit
|
|
239,131
|
|
|
205,877
|
|
||
Selling, general and administrative expenses
|
|
181,542
|
|
|
137,841
|
|
||
Income from operations
|
|
57,589
|
|
|
68,036
|
|
||
Other (expense) income, net
|
|
(486
|
)
|
|
529
|
|
||
Income before income tax expense
|
|
57,103
|
|
|
68,565
|
|
||
Income tax expense
|
|
11,767
|
|
|
20,755
|
|
||
Net income
|
|
$
|
45,336
|
|
|
$
|
47,810
|
|
|
|
|
|
|
||||
Other comprehensive income:
|
|
|
|
|
||||
Foreign currency translation adjustment
|
|
73,562
|
|
|
22,606
|
|
||
Comprehensive income
|
|
$
|
118,898
|
|
|
$
|
70,416
|
|
|
|
|
|
|
||||
Basic earnings per share
|
|
$
|
0.33
|
|
|
$
|
0.34
|
|
Diluted earnings per share
|
|
$
|
0.33
|
|
|
$
|
0.34
|
|
Basic weighted-average number of shares outstanding
|
|
137,263
|
|
|
141,967
|
|
||
Diluted weighted-average number of shares outstanding
|
|
137,496
|
|
|
142,337
|
|
|
|
Exchangeable Stock
|
|
Special Voting Stock
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Loss
|
|
Total
|
|||||||||||||||||||
|
|
Shares
|
|
Shares
|
|
Par Value
|
|
Shares
|
|
Par Value
|
|
|
|
|
|||||||||||||||||||
Balance at January 31, 2016
|
|
9,804
|
|
|
9,804
|
|
|
$
|
—
|
|
|
127,482
|
|
|
$
|
637
|
|
|
$
|
245,533
|
|
|
$
|
1,019,515
|
|
|
$
|
(238,203
|
)
|
|
$
|
1,027,482
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
45,336
|
|
|
|
|
45,336
|
|
|||||||||||||
Foreign currency translation adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
73,562
|
|
|
73,562
|
|
|||||||||||||
Stock-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
3,174
|
|
|
|
|
|
|
3,174
|
|
|||||||||||||
Tax benefits from stock-based compensation
|
|
|
|
|
|
|
|
|
|
|
|
293
|
|
|
|
|
|
|
293
|
|
|||||||||||||
Common stock issued upon settlement of stock-based compensation
|
|
|
|
|
|
|
|
140
|
|
|
1
|
|
|
3,578
|
|
|
|
|
|
|
3,579
|
|
|||||||||||
Shares withheld related to net share settlement of stock-based compensation
|
|
|
|
|
|
|
|
(21
|
)
|
|
—
|
|
|
(1,436
|
)
|
|
|
|
|
|
(1,436
|
)
|
|||||||||||
Repurchase of common stock
|
|
|
|
|
|
|
|
(242
|
)
|
|
(1
|
)
|
|
(343
|
)
|
|
(15,421
|
)
|
|
|
|
(15,765
|
)
|
||||||||||
Balance at May 1, 2016
|
|
9,804
|
|
|
9,804
|
|
|
$
|
—
|
|
|
127,359
|
|
|
$
|
637
|
|
|
$
|
250,799
|
|
|
$
|
1,049,430
|
|
|
$
|
(164,641
|
)
|
|
$
|
1,136,225
|
|
|
|
Thirteen Weeks Ended
May 1, 2016 |
|
Thirteen Weeks Ended
May 3, 2015 |
||||
Cash flows from operating activities
|
|
|
|
|
||||
Net income
|
|
$
|
45,336
|
|
|
$
|
47,810
|
|
Items not affecting cash
|
|
|
|
|
||||
Depreciation and amortization
|
|
19,185
|
|
|
16,096
|
|
||
Stock-based compensation expense
|
|
3,174
|
|
|
2,068
|
|
||
Tax benefits from stock-based compensation
|
|
(293
|
)
|
|
(209
|
)
|
||
Changes in operating assets and liabilities
|
|
|
|
|
||||
Inventories
|
|
12,912
|
|
|
(25,797
|
)
|
||
Prepaid and receivable income taxes
|
|
(348
|
)
|
|
2,182
|
|
||
Other prepaid expenses and other current assets
|
|
(220
|
)
|
|
(3,410
|
)
|
||
Accounts payable
|
|
(4,532
|
)
|
|
(4,092
|
)
|
||
Accrued inventory liabilities
|
|
(7,057
|
)
|
|
16,001
|
|
||
Accrued compensation and related expenses
|
|
(11,339
|
)
|
|
(2,853
|
)
|
||
Income taxes payable
|
|
(5,196
|
)
|
|
(19,428
|
)
|
||
Unredeemed gift card liability
|
|
(9,042
|
)
|
|
(7,510
|
)
|
||
Other accrued liabilities
|
|
(456
|
)
|
|
(1,191
|
)
|
||
Other non-current assets and liabilities
|
|
(2,390
|
)
|
|
1,273
|
|
||
Net cash provided by operating activities
|
|
39,734
|
|
|
20,940
|
|
||
Cash flows from investing activities
|
|
|
|
|
||||
Purchase of property and equipment
|
|
(26,644
|
)
|
|
(27,936
|
)
|
||
Net cash used in investing activities
|
|
(26,644
|
)
|
|
(27,936
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
||||
Proceeds from settlement of stock-based compensation
|
|
3,579
|
|
|
2,802
|
|
||
Tax benefits from stock-based compensation
|
|
293
|
|
|
209
|
|
||
Taxes paid related to net share settlement of stock-based compensation
|
|
(1,436
|
)
|
|
(1,237
|
)
|
||
Repurchase of common stock
|
|
(15,765
|
)
|
|
(18,815
|
)
|
||
Net cash used in financing activities
|
|
(13,329
|
)
|
|
(17,041
|
)
|
||
Effect of exchange rate changes on cash
|
|
48,803
|
|
|
15,439
|
|
||
Increase (decrease) in cash and cash equivalents
|
|
48,564
|
|
|
(8,598
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
501,482
|
|
|
664,479
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
550,046
|
|
|
$
|
655,881
|
|
|
|
Stock Options
|
|
Performance-Based Restricted Stock Units
|
|
Restricted Shares
|
|
Restricted Stock Units
|
||||||||||||||||||||
|
|
Number
|
|
Weighted-Average Exercise Price
|
|
Number
|
|
Weighted-Average Grant Date Fair Value
|
|
Number
|
|
Weighted-Average Grant Date Fair Value
|
|
Number
|
|
Weighted-Average Grant Date Fair Value
|
||||||||||||
|
|
(In thousands, except per share amounts)
|
||||||||||||||||||||||||||
Balance at January 31, 2016
|
|
867
|
|
|
$
|
49.54
|
|
|
395
|
|
|
$
|
58.58
|
|
|
31
|
|
|
$
|
57.67
|
|
|
333
|
|
|
$
|
55.91
|
|
Granted
|
|
401
|
|
|
68.68
|
|
|
154
|
|
|
68.68
|
|
|
1
|
|
|
59.09
|
|
|
184
|
|
|
68.47
|
|
||||
Exercised/vested
|
|
91
|
|
|
39.40
|
|
|
2
|
|
|
75.35
|
|
|
—
|
|
|
—
|
|
|
47
|
|
|
64.05
|
|
||||
Forfeited
|
|
58
|
|
|
54.72
|
|
|
104
|
|
|
63.12
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|
49.35
|
|
||||
Balance at May 1, 2016
|
|
1,119
|
|
|
$
|
56.95
|
|
|
443
|
|
|
$
|
60.94
|
|
|
32
|
|
|
$
|
57.71
|
|
|
443
|
|
|
$
|
60.66
|
|
Exercisable at May 1, 2016
|
|
224
|
|
|
$
|
43.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Options Granted During
Fiscal 2016
|
|
Expected term
|
|
4 years
|
|
Expected volatility
|
|
40.07
|
%
|
Risk-free interest rate
|
|
1.08
|
%
|
Dividend yield
|
|
—
|
%
|
|
|
Thirteen Weeks Ended
May 1, 2016 |
|
Thirteen Weeks Ended
May 3, 2015 |
||||
|
|
(In thousands, except per share amounts)
|
||||||
Net income
|
|
$
|
45,336
|
|
|
$
|
47,810
|
|
Basic weighted-average number of shares outstanding
|
|
137,263
|
|
|
141,967
|
|
||
Assumed conversion of dilutive stock options and awards
|
|
233
|
|
|
370
|
|
||
Diluted weighted-average number of shares outstanding
|
|
137,496
|
|
|
142,337
|
|
||
Basic earnings per share
|
|
$
|
0.33
|
|
|
$
|
0.34
|
|
Diluted earnings per share
|
|
$
|
0.33
|
|
|
$
|
0.34
|
|
|
|
May 1,
2016 |
|
January 31,
2016 |
||||
|
|
(In thousands)
|
||||||
Inventories:
|
|
|
|
|
||||
Finished goods
|
|
$
|
293,620
|
|
|
$
|
290,791
|
|
Provision to reduce inventory to market value
|
|
(7,390
|
)
|
|
(6,782
|
)
|
||
|
|
$
|
286,230
|
|
|
$
|
284,009
|
|
Property and equipment:
|
|
|
|
|
||||
Land
|
|
$
|
61,248
|
|
|
$
|
55,488
|
|
Buildings
|
|
33,143
|
|
|
30,885
|
|
||
Leasehold improvements
|
|
241,993
|
|
|
225,604
|
|
||
Furniture and fixtures
|
|
78,138
|
|
|
73,254
|
|
||
Computer hardware
|
|
49,117
|
|
|
44,085
|
|
||
Computer software
|
|
131,887
|
|
|
112,161
|
|
||
Equipment and vehicles
|
|
12,254
|
|
|
11,929
|
|
||
Accumulated depreciation
|
|
(229,967
|
)
|
|
(203,801
|
)
|
||
|
|
$
|
377,813
|
|
|
$
|
349,605
|
|
Goodwill and intangible assets, net:
|
|
|
|
|
||||
Goodwill
|
|
$
|
25,496
|
|
|
$
|
25,496
|
|
Changes in foreign currency exchange rates
|
|
(1,003
|
)
|
|
(1,666
|
)
|
||
|
|
24,493
|
|
|
23,830
|
|
||
Intangibles—reacquired franchise rights
|
|
10,150
|
|
|
10,150
|
|
||
Accumulated amortization
|
|
(9,271
|
)
|
|
(9,074
|
)
|
||
Changes in foreign currency exchange rates
|
|
(52
|
)
|
|
(129
|
)
|
||
|
|
827
|
|
|
947
|
|
||
|
|
$
|
25,320
|
|
|
$
|
24,777
|
|
Other accrued liabilities:
|
|
|
|
|
||||
Accrued duty, freight, and other operating expenses
|
|
$
|
28,437
|
|
|
$
|
26,017
|
|
Sales tax collected
|
|
11,025
|
|
|
10,506
|
|
||
Accrued rent
|
|
5,355
|
|
|
6,070
|
|
||
Other
|
|
6,905
|
|
|
8,083
|
|
||
|
|
$
|
51,722
|
|
|
$
|
50,676
|
|
Other non-current liabilities:
|
|
|
|
|
||||
Deferred lease liability
|
|
$
|
27,296
|
|
|
$
|
25,723
|
|
Tenant inducements
|
|
24,324
|
|
|
24,609
|
|
||
|
|
$
|
51,620
|
|
|
$
|
50,332
|
|
|
|
Thirteen Weeks Ended
May 1, 2016 |
|
Thirteen Weeks Ended
May 3, 2015 |
||||
|
|
(In thousands)
|
||||||
Net revenue:
|
|
|
|
|
||||
Company-operated stores
|
|
$
|
358,704
|
|
|
$
|
314,094
|
|
Direct to consumer
|
|
97,566
|
|
|
83,636
|
|
||
Other
|
|
39,246
|
|
|
25,814
|
|
||
|
|
$
|
495,516
|
|
|
$
|
423,544
|
|
Income from operations before general corporate expense:
|
|
|
|
|
||||
Company-operated stores
|
|
$
|
73,259
|
|
|
$
|
69,223
|
|
Direct to consumer
|
|
38,551
|
|
|
34,871
|
|
||
Other
|
|
2,069
|
|
|
981
|
|
||
|
|
113,879
|
|
|
105,075
|
|
||
General corporate expense
|
|
56,290
|
|
|
37,039
|
|
||
Income from operations
|
|
57,589
|
|
|
68,036
|
|
||
Other (expense) income, net
|
|
(486
|
)
|
|
529
|
|
||
Income before income tax expense
|
|
$
|
57,103
|
|
|
$
|
68,565
|
|
|
|
|
|
|
||||
Capital expenditures:
|
|
|
|
|
||||
Company-operated stores
|
|
$
|
16,750
|
|
|
$
|
16,844
|
|
Direct to consumer
|
|
1,163
|
|
|
453
|
|
||
Corporate and other
|
|
8,731
|
|
|
10,639
|
|
||
|
|
$
|
26,644
|
|
|
$
|
27,936
|
|
Depreciation and amortization:
|
|
|
|
|
||||
Company-operated stores
|
|
$
|
13,784
|
|
|
$
|
11,277
|
|
Direct to consumer
|
|
1,329
|
|
|
1,536
|
|
||
Corporate and other
|
|
4,072
|
|
|
3,283
|
|
||
|
|
$
|
19,185
|
|
|
$
|
16,096
|
|
•
|
Net revenue for
first
quarter of fiscal
2016
increased by
17%
to
$495.5 million
, from
$423.5 million
in the
first
quarter of fiscal
2015
. This increase was primarily from increased sales from our company-operated stores, including the addition of
57
net new company-operated stores since the
first
quarter of fiscal
2015
as well as increased comparable store sales, and increased direct to consumer net revenue.
|
•
|
Total comparable sales, which includes comparable store sales and direct to consumer,
increased
6%
in the
first
quarter of fiscal
2016
compared to the
first
quarter of fiscal
2015
. On a constant dollar basis, total comparable sales
increased
by
8%
.
|
•
|
Company-operated stores accounted for
72.4%
of net revenue in the
first
quarter of fiscal
2016
compared to
74.2%
of net revenue in the
first
quarter of fiscal
2015
. Comparable store sales
increased
by
3%
in the
first
quarter of fiscal
2016
compared to the
first
quarter of fiscal
2015
, or by
5%
on a constant dollar basis, primarily as a result of increased dollar value per transaction.
|
•
|
Our direct to consumer segment is a substantial part of our growth strategy, and represented
19.7%
of our net revenue in the
first
quarter of each of fiscal
2016
and fiscal
2015
. Direct to consumer net revenue
increased
by
17%
in the
first
quarter of fiscal
2016
compared to the
first
quarter of fiscal
2015
, or by
18%
on a constant dollar basis, primarily as the result of higher traffic on our e-commerce websites.
|
•
|
Gross profit for the
first
quarter of fiscal
2016
increase
d by
16%
to
$239.1 million
, from
$205.9 million
in the
first
quarter of fiscal
2015
. Gross profit as a percentage of net revenue, or gross margin,
decrease
d to
48.3%
compared to
48.6%
in the
first
quarter of fiscal
2015
. The decrease in gross margin was primarily due to unfavorable foreign exchange rates and increased fixed costs, partially offset by increased product margin.
|
•
|
Income from operations for the
first
quarter of fiscal
2016
decrease
d by
15%
to
$57.6 million
, from
$68.0 million
in the
first
quarter of fiscal
2015
. As a percentage of net revenue, income from operations
decreased
to
11.6%
compared to
16.1%
of net revenue in the
first
quarter of fiscal
2015
. Included in selling, general and administrative expenses were net foreign exchange losses of
$13.5 million
in the
first
quarter of fiscal
2016
, representing an increase of
$9.1 million
from
$4.5 million
in the
first
quarter of fiscal
2015
, primarily related to the revaluation of U.S. dollar cash and receivables held in Canada.
|
•
|
Income tax expense for the
first
quarter of fiscal
2016
decrease
d by
43%
to
$11.8 million
, from
$20.8 million
in the
first
quarter of fiscal
2015
. Our effective tax rate for the
first
quarter of fiscal
2016
was
20.6%
compared to
30.3%
for the
first
quarter of fiscal
2015
. The
first
quarter of fiscal
2016
included a net income tax recovery of
$5.6 million
related to our transfer pricing arrangements and and the associated plan to repatriate foreign earnings. In addition, the
first
quarter of fiscal
2016
included a related net interest expense of
$1.2 million
recorded in other (expense) income, net. Our effective tax rate excluding these adjustments was
29.8%
in the
first
quarter of fiscal
2016
.
|
•
|
Diluted earnings per share for the
first
quarter of fiscal
2016
were
$0.33
compared to
$0.34
in the
first
quarter of fiscal
2015
. Excluding the above tax and related interest adjustments, diluted earnings per share were
$0.30
for the
first
quarter of fiscal
2016
.
|
|
|
Thirteen Weeks Ended May 1, 2016 and May 3, 2015
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||
|
|
(In thousands)
|
|
(Percentages)
|
||||||||||
Net revenue
|
|
$
|
495,516
|
|
|
$
|
423,544
|
|
|
100.0
|
%
|
|
100.0
|
%
|
Cost of goods sold
|
|
256,385
|
|
|
217,667
|
|
|
51.7
|
|
|
51.4
|
|
||
Gross profit
|
|
239,131
|
|
|
205,877
|
|
|
48.3
|
|
|
48.6
|
|
||
Selling, general and administrative expenses
|
|
181,542
|
|
|
137,841
|
|
|
36.6
|
|
|
32.5
|
|
||
Income from operations
|
|
57,589
|
|
|
68,036
|
|
|
11.6
|
|
|
16.1
|
|
||
Other (expense) income, net
|
|
(486
|
)
|
|
529
|
|
|
(0.1
|
)
|
|
0.1
|
|
||
Income before income tax expense
|
|
57,103
|
|
|
68,565
|
|
|
11.5
|
|
|
16.2
|
|
||
Income tax expense
|
|
11,767
|
|
|
20,755
|
|
|
2.5
|
|
|
4.9
|
|
||
Net income
|
|
$
|
45,336
|
|
|
$
|
47,810
|
|
|
9.0
|
%
|
|
11.3
|
%
|
|
|
Thirteen Weeks Ended May 1, 2016 and May 3, 2015
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||
|
|
(In thousands)
|
|
(Percentages)
|
||||||||||
Company-operated stores
|
|
$
|
358,704
|
|
|
$
|
314,094
|
|
|
72.4
|
%
|
|
74.2
|
%
|
Direct to consumer
|
|
97,566
|
|
|
83,636
|
|
|
19.7
|
|
|
19.7
|
|
||
Other
|
|
39,246
|
|
|
25,814
|
|
|
7.9
|
|
|
6.1
|
|
||
Net revenue
|
|
$
|
495,516
|
|
|
$
|
423,544
|
|
|
100.0
|
%
|
|
100.0
|
%
|
•
|
Net revenue from company-operated stores we opened subsequent to
May 3, 2015
, and therefore not included in comparable store sales, contributed
$36.1 million
to the
increase
. We have opened
57
net new company-operated stores since the
first
quarter of fiscal
2015
, including
44
stores in the United States,
four
stores in the United Kingdom,
two
stores in each of Canada, Hong Kong, and Singapore, and
one
store in each of Australia, Germany, and Puerto Rico.
|
•
|
A comparable store sales increase of
3%
in the
first
quarter of fiscal
2016
compared to the
first
quarter of fiscal
2015
resulted in an
$8.5 million
increase
to net revenue. Comparable store sales
increased
5%
, or
$13.0 million
on a constant dollar basis. The increase in comparable store sales was primarily as a result of increased dollar value per transaction.
|
•
|
an unfavorable impact of foreign exchange rates which contributed to a decrease in gross margin of 50 basis points; and
|
•
|
an increase in fixed costs, such as occupancy costs and depreciation, relative to the increase in net revenue, of 20 basis points.
|
•
|
an increase
in employee costs for our operating locations of
$12.8 million
primarily from a growth in labor hours and bonuses, mainly associated with new company-operated stores;
|
•
|
an increase
in net foreign exchange losses of
$9.1 million
, from
$4.5 million
in the
first
quarter of fiscal
2015
to
$13.5 million
in the
first
quarter of fiscal
2016
, primarily related to the revaluation of U.S. dollar cash and receivables held in Canada;
|
•
|
an increase
in head office employee costs of
$6.6 million
primarily due to additional employees to support the growth in our business;
|
•
|
an increase
in head office costs other than employee costs of
$7.0 million
primarily due to increased professional fees, including supply chain consulting costs, and increased information technology costs;
|
•
|
an increase
in variable costs such as distribution costs and credit card fees of
$4.3 million
primarily as a result of increased sales from our company-operated stores, including new stores and increased comparable store sales, and increased direct to consumer net revenue; and
|
•
|
an increase
in other costs of
$3.9 million
for our operating channels such as digital marketing expenses and store community costs.
|
|
|
Thirteen Weeks Ended May 1, 2016 and May 3, 2015
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||
|
|
(In thousands)
|
|
(Percentages)
|
||||||||||
Company-operated stores
|
|
$
|
73,259
|
|
|
$
|
69,223
|
|
|
20.4
|
%
|
|
22.0
|
%
|
Direct to consumer
|
|
38,551
|
|
|
34,871
|
|
|
39.5
|
|
|
41.7
|
|
||
Other
|
|
2,069
|
|
|
981
|
|
|
5.3
|
|
|
3.8
|
|
||
Income from operations before general corporate expense
|
|
113,879
|
|
|
105,075
|
|
|
|
|
|
||||
General corporate expense
|
|
56,290
|
|
|
37,039
|
|
|
|
|
|
||||
Income from operations
|
|
$
|
57,589
|
|
|
$
|
68,036
|
|
|
|
|
|
|
|
Thirteen Weeks Ended May 1, 2016 and May 3, 2015
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||
|
|
(In thousands)
|
|
(Percentages)
|
||||||||||
Net revenue increase
|
|
$
|
71,972
|
|
|
$
|
38,926
|
|
|
17
|
%
|
|
10
|
%
|
Adjustments due to foreign exchange rate changes
|
|
7,292
|
|
|
15,208
|
|
|
2
|
|
|
4
|
|
||
Net revenue increase in constant dollars
|
|
$
|
79,264
|
|
|
$
|
54,134
|
|
|
19
|
%
|
|
14
|
%
|
|
|
Thirteen Weeks Ended May 1, 2016 and May 3, 2015
|
||||
|
|
2016
|
|
2015
|
||
|
|
(Percentages)
|
||||
Increase in total comparable sales
1
|
|
6
|
%
|
|
2
|
%
|
Adjustments due to foreign exchange rate changes
|
|
2
|
|
|
4
|
|
Increase in total comparable sales in constant dollars
1
|
|
8
|
%
|
|
6
|
%
|
|
|
Thirteen Weeks Ended May 1, 2016 and May 3, 2015
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||
|
|
(In thousands)
|
|
(Percentages)
|
||||||||||
Increase (decrease) in comparable store sales
1
|
|
$
|
8,512
|
|
|
$
|
(12,158
|
)
|
|
3
|
%
|
|
(5
|
)%
|
Adjustments due to foreign exchange rate changes
|
|
4,511
|
|
|
9,699
|
|
|
2
|
|
|
4
|
|
||
Increase (decrease) in comparable store sales in constant dollars
1
|
|
$
|
13,023
|
|
|
$
|
(2,459
|
)
|
|
5
|
%
|
|
(1
|
)%
|
|
|
Thirteen Weeks Ended May 1, 2016 and May 3, 2015
|
||||
|
|
2016
|
|
2015
|
||
|
|
(Percentages)
|
||||
Increase in direct to consumer net revenue
|
|
17
|
%
|
|
27
|
%
|
Adjustments due to foreign exchange rate changes
|
|
1
|
|
|
4
|
|
Increase in direct to consumer net revenue in constant dollars
|
|
18
|
%
|
|
31
|
%
|
|
|
Thirteen Weeks Ended May 1, 2016 and May 3, 2015
|
||||
|
|
2016
|
|
2015
|
||
|
|
(Percentages)
|
||||
Effective tax rate
|
|
20.6
|
%
|
|
30.3
|
%
|
Tax and related interest adjustments
1
|
|
9.2
|
|
|
—
|
|
Effective tax rate, excluding tax and related interest adjustments
|
|
29.8
|
%
|
|
30.3
|
%
|
|
|
Thirteen Weeks Ended May 1, 2016 and May 3, 2015
|
||||||
|
|
2016
|
|
2015
|
||||
Diluted earnings per share
|
|
$
|
0.33
|
|
|
$
|
0.34
|
|
Tax and related interest adjustments
1
|
|
(0.03
|
)
|
|
—
|
|
||
Diluted earnings per share, excluding tax and related interest adjustments
|
|
$
|
0.30
|
|
|
$
|
0.34
|
|
|
|
Thirteen Weeks Ended May 1, 2016 and May 3, 2015
|
||||||
|
|
2016
|
|
2015
|
||||
|
|
(In thousands)
|
||||||
Total cash provided by (used in):
|
|
|
|
|
||||
Operating activities
|
|
$
|
39,734
|
|
|
$
|
20,940
|
|
Investing activities
|
|
(26,644
|
)
|
|
(27,936
|
)
|
||
Financing activities
|
|
(13,329
|
)
|
|
(17,041
|
)
|
||
Effect of exchange rate changes on cash
|
|
48,803
|
|
|
15,439
|
|
||
Increase (decrease) in cash and cash equivalents
|
|
$
|
48,564
|
|
|
$
|
(8,598
|
)
|
|
|
May 1,
2016 |
|
January 31,
2016 |
||
lululemon athletica
|
|
|
|
|
||
United States
|
|
231
|
|
|
229
|
|
Canada
|
|
48
|
|
|
48
|
|
Australia
|
|
27
|
|
|
26
|
|
New Zealand
|
|
5
|
|
|
5
|
|
United Kingdom
|
|
6
|
|
|
6
|
|
Singapore
|
|
3
|
|
|
2
|
|
Hong Kong
|
|
2
|
|
|
2
|
|
Germany
|
|
1
|
|
|
1
|
|
Puerto Rico
|
|
1
|
|
|
1
|
|
|
|
324
|
|
|
320
|
|
ivivva athletica
|
|
|
|
|
||
United States
|
|
36
|
|
|
31
|
|
Canada
|
|
13
|
|
|
12
|
|
|
|
49
|
|
|
43
|
|
Total
|
|
373
|
|
|
363
|
|
•
|
an increase in our net revenue upon translation of the sales made by our Canadian operations into U.S. dollars for the purposes of consolidation;
|
•
|
an increase in our selling, general and administrative expenses incurred by our Canadian operations into U.S. dollars for the purposes of consolidation; and
|
•
|
foreign exchange losses by our Canadian subsidiaries on U.S. dollar cash and receivables denominated in U.S. dollars.
|
•
|
identify suitable store locations, the availability of which is outside of our control;
|
•
|
negotiate acceptable lease terms, including desired tenant improvement allowances;
|
•
|
hire, train and retain store personnel and field management;
|
•
|
immerse new store personnel and field management into our corporate culture;
|
•
|
source sufficient inventory levels; and
|
•
|
successfully integrate new stores into our existing operations and information technology systems.
|
•
|
an increase in our net revenue upon translation of the sales made by our Canadian operations into U.S. dollars for the purposes of consolidation;
|
•
|
an increase in our selling, general and administrative expenses incurred by our Canadian operations into U.S. dollars for the purposes of consolidation; and
|
•
|
foreign exchange losses by our Canadian subsidiaries on U.S. dollar cash and receivables denominated in U.S. dollars.
|
•
|
political unrest, terrorism, labor disputes, and economic instability resulting in the disruption of trade from foreign countries in which our products are manufactured;
|
•
|
the imposition of new laws and regulations, including those relating to labor conditions, quality and safety standards, imports, duties, taxes and other charges on imports, as well as trade restrictions and restrictions on currency exchange or the transfer of funds;
|
•
|
reduced protection for intellectual property rights, including trademark protection, in some countries, particularly China;
|
•
|
disruptions or delays in shipments; and
|
•
|
changes in local economic conditions in countries where our manufacturers, suppliers, or guests are located.
|
•
|
the classification of our board of directors into three classes, with one class elected each year;
|
•
|
prohibiting cumulative voting in the election of directors;
|
•
|
the ability of our board of directors to issue preferred stock without stockholder approval;
|
•
|
the ability to remove a director only for cause and only with the vote of the holders of at least 66 2/3% of our voting stock;
|
•
|
a special meeting of stockholders may only be called by our chairman or Chief Executive Officer, or upon a resolution adopted by an affirmative vote of a majority of the board of directors, and not by our stockholders;
|
•
|
prohibiting stockholder action by written consent; and
|
•
|
our stockholders must comply with advance notice procedures in order to nominate candidates for election to our board of directors or to place stockholder proposals on the agenda for consideration at any meeting of our stockholders.
|
Period
(1)
|
|
Total Number of Shares Purchased
(2)
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
(2)
|
|
Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
(2)
|
||||||
February 1, 2016 - February 28, 2016
|
|
3,000
|
|
|
$
|
54.93
|
|
|
3,000
|
|
|
$
|
28,383,565
|
|
February 29, 2016 - April 3, 2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,383,565
|
|
||
April 4, 2016 - May 1, 2016
|
|
239,423
|
|
|
65.14
|
|
|
239,423
|
|
|
12,787,705
|
|
||
Total
|
|
242,423
|
|
|
|
|
242,423
|
|
|
|
(1)
|
Monthly information is presented by reference to our fiscal periods during our
first
quarter of fiscal
2016
.
|
(2)
|
Our stock repurchase program was approved by our board of directors in June 2014. Common shares are repurchased in the open market at prevailing market prices, including under written plans complying with the provisions of Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, with the timing and actual number of common shares repurchased depending upon market conditions, eligibility to trade, and other factors. The repurchases may be made up until June 2016, and the maximum dollar value of shares to be repurchased is $450 million.
|
Period
(1)
|
|
Total Number of Shares Purchased
(2)
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
(2)
|
|
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
(2)
|
|||||
February 1, 2016 - February 28, 2016
|
|
8,581
|
|
|
$
|
59.93
|
|
|
8,581
|
|
|
5,154,700
|
|
February 29, 2016 - April 3, 2016
|
|
9,318
|
|
|
62.69
|
|
|
9,318
|
|
|
5,145,382
|
|
|
April 4, 2016 - May 1, 2016
|
|
9,444
|
|
|
62.52
|
|
|
9,444
|
|
|
5,135,938
|
|
|
Total
|
|
27,343
|
|
|
|
|
27,343
|
|
|
|
(1)
|
Monthly information is presented by reference to our fiscal periods during our
first
quarter of fiscal
2016
.
|
(2)
|
Our Employee Share Purchase Plan (ESPP) was approved by our board of directors and stockholders in September 2007. All shares purchased under the ESPP are purchased on the Nasdaq Global Select Market (or such other stock exchange as we may designate from time to time). Unless our board of directors terminates the ESPP earlier, the ESPP will continue until all shares authorized for purchase under the ESPP have been purchased. The maximum number of shares authorized to be purchased under the ESPP is 6,000,000.
|
|
|
|
|
|
|
Incorporated by Reference
|
||||||
Exhibit
No.
|
|
Exhibit Title
|
|
Filed
Herewith
|
|
Form
|
|
Exhibit
No.
|
|
File No.
|
|
Filing
Date
|
|
|
|
|
|
|
|
||||||
10.1*
|
|
Form of Notice of Grant of Non-Qualified Stock Option and Non-Qualified Stock Option Agreement (with clawback provision)
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.2*
|
|
Form of Notice of Grant of Performance Shares and Performance Shares Agreement (with clawback provision)
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.3*
|
|
Form of Notice of Grant of Restricted Stock Units and Restricted Stock Units Agreement (with clawback provision)
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.1
|
|
Certification of Chief Executive Officer Pursuant to Exchange Act Rule 13a-14(a)
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.2
|
|
Certification of Chief Financial Officer Pursuant to Exchange Act Rule 13a-14(a)
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32.1**
|
|
Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101
|
|
The following unaudited interim consolidated financial statements from the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended May 1, 2016, formatted in XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations and Comprehensive Income, (iii) Consolidated Statements of Stockholders' Equity, (iv) Consolidated Statements of Cash Flows (v) Notes to the Unaudited Interim Consolidated Financial Statements
|
|
X
|
|
|
|
|
|
|
|
|
*
|
Denotes a compensatory plan, contract or arrangement, in which our directors or executive officers may participate.
|
**
|
Furnished herewith
|
|
|
lululemon athletica inc.
|
|
|
|
By:
|
|
/s/
S
TUART
H
ASELDEN
|
|
|
Stuart Haselden
|
|
|
Chief Financial Officer
(Principal Financial Officer and
Principal Accounting Officer)
|
|
|
|
|
|
|
Incorporated by Reference
|
||||||
Exhibit
No.
|
|
Exhibit Title
|
|
Filed
Herewith
|
|
Form
|
|
Exhibit
No.
|
|
File No.
|
|
Filing
Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.1*
|
|
Form of Notice of Grant of Non-Qualified Stock Option and Non-Qualified Stock Option Agreement (with clawback provision)
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.2*
|
|
Form of Notice of Grant of Performance Shares and Performance Shares Agreement (with clawback provision)
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.3*
|
|
Form of Notice of Grant of Restricted Stock Units and Restricted Stock Units Agreement (with clawback provision)
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.1
|
|
Certification of Chief Executive Officer Pursuant to Exchange Act Rule 13a-14(a)
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
31.2
|
|
Certification of Chief Financial Officer Pursuant to Exchange Act Rule 13a-14(a)
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32.1**
|
|
Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101
|
|
The following unaudited interim consolidated financial statements from the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended May 1, 2016, formatted in XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations and Comprehensive Income, (iii) Consolidated Statements of Stockholders' Equity, (iv) Consolidated Statements of Cash Flows (v) Notes to the Unaudited Interim Consolidated Financial Statements
|
|
X
|
|
|
|
|
|
|
|
|
*
|
Denotes a compensatory plan, contract or arrangement, in which our directors or executive officers may participate.
|
**
|
Furnished herewith
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
Customers
Customer name | Ticker |
---|---|
Abercrombie & Fitch Co. | ANF |
Macy's, Inc. | M |
The Gap, Inc. | GPS |
Kohl's Corporation | KSS |
Nordstrom, Inc. | JWN |
Ross Stores, Inc. | ROST |
The TJX Companies, Inc. | TJX |
No Suppliers Found
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|