Country: Canada

Lululemon Athletica, a Canadian athletic apparel retailer, has unveiled its fourth quarter and full-year results. The company reported that its net revenue for the reporting quarter ending January 31, 2016 rose by 17 per cent to $ 704.3 million from $ 602.5 million in the corresponding quarter last year. Net revenue for the fiscal year 2015 too zoomed by 15 per cent to $ 2.1 billion from $ 1.8 billion in fiscal 2014.

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Total comparable sales on a constant dollar basis surged 11 per cent for the fourth quarter. Comparable store sales increased by 5 per cent and direct to consumer net revenue rose 33 per cent. Gross profit for the reporting quarter increased by 14 per cent to $ 354.5 million.

For full year 2015, total comparable sales increased by 10 per cent and comparable store sales climbed 4 per cent with 30 per cent rise in direct to consumer net revenue. Gross profit for the FY increased by 9 per cent to $ 997.2 million from $ 914.2 million last year, according to the company release.

Commenting on the results, Laurent Potdevin, CEO, Lululemon said, “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.

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Lululemon is optimistic about 2016 as well and expects net revenue to be in the range of $ 2.285 billion to $ 2.335 billion.

Retail clothing sector of Canada is expected to slow down in the coming years, predicts industry experts. Moreover, it is expected that sales will surge to a mere 1 per cent in 2018, says Trendex North America, a marketing research company specializing in the apparel industry.

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Trendex, in its 2016 Retail Apparel Market Forecast, envisages that sales will grow by 2.4 per cent this year against 3.8 per cent last year, dropping to 1.7 per cent growth in 2017 before regaining surge to 2.1 per cent in the year 2020. However, Bank of Canada’s forecasts the outlook for economic growth at 1.4 per cent for the same year.

The low Canadian dollar will put pressure on retailers’ profits and force them to equipoise higher costs by increasing prices, possibly by 3 per cent to 5 per cent. Despite the fact that retail sales will be under pressure, experts believe that e-commerce segment will continue to grow, as the millennials today prefer to shop online than to visit brick-and-mortar stores.

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But the industry insiders also say that the luxury segment will help ease the lethargy in the retail sector as many fashion retailers are making their way to Canada – US retailer Nordstrom expands its presence with three new locations in Toronto this year and next; Saks Fifth Avenue will too be opening two stores in the capital.

Gildan Activewear has registered a plunge of around 14 per cent in the profits earned in the second quarter of the current fiscal. The company noted net earnings of US $ 99 million compared to around US $ 115 million in the prior review period.

Consolidated net sales in the second calendar quarter of 2015 amounted to US $ 714.2 million, up 2.9% from US $ 693.8 million in the corresponding quarter of the prior year, reflecting an increase of 12.3% in sales for Branded Apparel, partially offset by a 1.2% decline in Printwear sales largely due to the selling price reductions implemented in December of 2014 and the lower number of shipping days compared to the corresponding quarter of last year.

Gildan Activewear is a manufacturer and marketer of branded clothing such as T-shirts, sport shirts and fleeces, which are subsequently decorated by screen printing companies with designs and logos.

Through a joint venture with a Canadian distributor, The Mercer House, Tom Tailor Group has forayed into the highpotential Canadian market. The Mercer House, with decades of expertise and experience in sales and marketing in both the retail and wholesale sectors hold 49% share in the JV. Tom Tailor has introduced its Tom Tailor, Tom Tailor Denim and Tom Tailor Contemporary brands in the Canadian market.

This growth will be flanked by the targeted establishment of retail stores. The Group has already opened a showroom in Montreal to present its product ranges. “The Canadian market is very attractive for companies in the fashion industry and is at the same time very similar to the European market,” Dieter Holzer, CEO of Tom Tailor Holding AG said. “Metropolises like Toronto and Montreal offer excellent opportunities for entering the market and expanding,” he added.

The Mercer House is a leading, full service multi-brand licensing and distribution company of lifestyle brands. It is an exclusive distributor for Ragwear for USA and Canada, as well as the exclusive Canadian licensees or distributors for Billionaire Boys Club, Modern Amusement, Wutang Brand Ltd., Famous Stars and Straps and Reason.

Canada-based Grafton Fraser Inc., retailer of menswear, has acquired Jones New York’s 35 retail stores across Canada. “We are very excited to add Jones New York women’s clothing stores to our growing fashion retail portfolio. For more than two decades Jones New York has been a trusted fashion brand in Canada that women have looked to for its timeless elegance, great quality and style. We bring 100+ years of experience to Canadian fashion retail, and see Jones New York as a perfect fit for Grafton,” said Dave McGregor, President & CEO of Grafton Fraser.

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