Canadian yogawear firm Lululemon athletica posted net income of CAD$30.8m (US$30.27m) for the full-year 2007 period, and announced it was discontinuing its operations in Japan.

For the fiscal year, Lululemon's net revenue increased 84% to $274.7m, with sales from corporate-owned stores up 102% to $243.6m.

Its fourth quarter net revenue increased 101% to $105.1m, leading to a net income of $14.6m, compared to $0.9m in the fourth quarter of fiscal 2006.

Robert Meers, lululemon's CEO said: "We are extremely pleased with the accelerated growth of our fourth quarter results. We believe that the strong momentum generated in 2007 puts us in great standing for 2008. The company will continue to deliver innovative performance apparel, a distinctive store experience, and a community-based marketing approach, focusing on U.S. expansion.

"While the current overall consumer environment may be challenging, the increasing loyalty of our guests and our unique positioning in the historically resilient active and healthy-lifestyle market, are providing for continued acceptance of our brand."

On Japan, Lululemon said it had opened its first store in Japan in 2005 and has operated in Japan through a joint venture called Lululemon Japan that currently has four stores.

However, Meers continued: "Japan represents less than 1.5% of our revenues but has been taking a disproportionate amount of management time and attention over this past year. After re-evaluating our operating performance in Japan and our priorities, we have concluded our time, attention, and capital resources are best spent focused on our top priorities which are growth in the United States, where we plan to open 35 stores in 2008, and the development of an e-commerce business."

The company expects to now exceed its previously stated long-term growth targets of net revenue growth of approximately 25% and diluted EPS growth in excess of 25%. For fiscal 2008, diluted earnings per share are expected to be in the range of $0.70 to $0.72.

In a separate news release, Lululemon has appointed Christine Day to the offices of president and COO and to the role of CEO Designate. Ms. Day will be appointed CEO upon the retirement of Bob Meers on 30 June, the company added.