Yoga-inspired athletic apparel company Lululemon achieved a revenue milestone with US$1 billion for the year to January 29.

Net revenue for the fiscal year increased 40.6 per cent from US$711.7 million in 2010. Comparable store sales increased 20 per cent on a constant dollar basis, resulting in a record US$2004 annual sales per square foot for comparable stores.

“Reaching a billion dollars in revenue is clearly an important milestone that as a company we can all be very proud of. But far more important than the number itself are the beliefs, values, culture and people that achieved it. We really are so much more than our numbers; it is the everyday actions of our dedicated team that translates into an unparalleled guest experience and allows us to achieve our ultimate goal of elevating the world,” said Christine Day, Lululemon’s CEO.

Lululemon’s popularity has helped its total store count grow from 133 to 174 at the beginning of this year.

“Too many people still view Lululemon as a hot fashion fad. But their store economics are as good as anyone in retail. They are phenomenal operators. They make one of the most unique, technically innovative products in the US in terms of design, fit and functionality. They are much more than just a fashion brand,” said John Kernan, analyst at Cowen & Co.

Analysts predict Lululemon’s network will grow to more than 600 stores in the coming years.

This year, Lululemon, whose brand includes athletic apparel for yoga, running, dancing and other sweaty pursuits, expects net revenue to be in the range of US$1.3 billion to US$1.325 billion. Lululemon, who shared its first retail store with a yoga studio, was founded in Vancouver, Canada in 1998.

GB