Lululemon, Couche-Tard and Power Corp Stocks Diverge

Lululemon reports US$586M net income in fourth quarter, names new board member

Lululemon Athletica Inc. reported that net income for its latest fiscal quarter was approximately US$586.9 million, a decline from US$748.4 million in the same quarter last year. The retailer, which records results in U.S. dollars, posted diluted earnings per share of US$5.01 for the period ending Feb. 1, down from US$6.14 a year earlier.

Revenue for the quarter was roughly US$3.6 billion, essentially flat compared with the prior year, showing modest growth of about one percent. Management described the quarter as a period of stable top-line performance but with pressure on profitability relative to the year-ago period.

In corporate governance news, Lululemon added Chip Bergh, the former president and chief executive of Levi Strauss & Co., to its board of directors. The move comes amid ongoing shareholder engagement, including public calls from company founder Chip Wilson who has advocated adding nominees to the board. Bergh was not among the nominees previously put forward.

Alimentation Couche-Tard reports higher year-over-year profit of US$757.2M

Alimentation Couche-Tard reported net earnings attributable to shareholders of US$757.2 million for its third quarter, an increase from US$641.4 million in the same period last year. On a diluted per-share basis, the company recorded earnings of US$0.82 compared with US$0.68 in the prior-year quarter.

For the period ending Feb. 1, total revenue came in at US$21.8 billion, up from US$20.9 billion a year earlier. The company said merchandise and service revenues rose to about US$5.8 billion, an increase of roughly 8.7% from the prior-year quarter.

Chief Financial Officer Filipe Da Silva characterized the results as one of the company’s stronger quarterly performances in recent years, crediting the progress of its updated approach. Earlier in February, Couche-Tard introduced a refreshed corporate strategy focused on strengthening core platforms and pursuing selective investments to support long-term growth.

Power Corp. reports $408M in net earnings, down year over year from $933M

Power Corp. of Canada said net earnings from continuing operations were $408 million in the fourth quarter, a decline from $933 million during the same quarter a year earlier. On a per-share basis, earnings from continuing operations were $0.64, down from $1.44 in the prior-year quarter.

The Montreal-based holding company reported that Great-West Lifeco, in which Power Corp. holds a majority interest, posted net earnings from continuing operations of $1.05 billion, slightly below the prior-year quarter’s $1.12 billion. Power Corp. also holds a majority stake in IGM Financial Inc.; IGM reported net earnings of $322.4 million for the quarter, up from $254.7 million a year earlier.

In leadership changes, Power Corp. named James O’Sullivan as its next president and chief executive, effective July 1. He will succeed Jeffrey Orr, who will transition to vice-chair and stand for re-election to the company’s board at the annual meeting.

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