• Fourth quarter net income rose 48.7% to $109.4m
  • Revenue was up 31% to $485.5m
  • Comparable-store sales were up 10% 

Active wear clothing brand Lululemon saw fourth quarter net income grow on rising sales and margins.

The company saw net income increase 48.7% over the quarter ended 3 February to reach US$109.4m from $73.5m in the same period of the prior year.

Revenue grew 31% to $485.5m, with comparable-store sales increasing 10%. Gross margin increased to 56.5% from 56.3% in the same period of the prior year.

The company is currently dealing with a recall of its black Luon pants after it discovered that they were sheerer than expected.

Commenting on the issue CEO Christine Day said: "Our proprietary fabric, black Luon, is a very technical and sensitive product to manufacture. We have a long history with our manufacturers and as we have in the past, we are working closely with them to resolve the current issues. We have a team on site collaborating with them to identify the root cause. We have recently added strong leadership in quality control, our liaison office and our commercialization and development teams, and expect these people and other investments to solidify our quality consistency and our delivery capabilities."

Over the full year, net income increased 46.5% to $270.5m from $184.9m. Net revenue increased 37% to $1.4bn, as comparable store sales grew 16%. Gross margin fell to 55.7% from 56.9%.