VANCOUVER, Canada--(BUSINESS WIRE)--
lululemon athletica inc. (NASDAQ: LULU; TSX: LLL) wishes to
provide further information regarding the items driving the earnings
per share guidance revision for fiscal 2008. As announced yesterday,
the Company now expects its diluted earnings per share to be between
$0.68 and $0.71 for fiscal 2008, compared to its earlier guidance for
the period of $0.70 and $0.72. The key changes from earlier guidance
are as follows:
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Item Amount
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1. Management Upgrades - relates to various charges $1.3 million
including options expense, recruiting and
severance charges that are incrementally related
to anticipated new members of management.
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2. Assistant Manager Position - relates to the $1.5 million
incremental salary charge for the additional
Assistant Manager position that is being added to
the current store structure.
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3. Depreciation of New IT systems -throughout our $1.2 million
original budgeting process we estimated the cost
of each component and allocated the depreciation
based on the implementation dates of each of these
systems. Accounting rules require that we
depreciate the majority of the costs with the
first phase of implementation which has begun. At
a 30% declining balance depreciation rate, this
pull forward of depreciation results in an
additional $1.2 million in expense.
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4. Margin Offset - on $10 million additional expected ($2.0 million)
sales at approximately 20% margin.
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5. Tax Savings - at approximately a 30% tax rate on ($0.6 million)
net change to operating income.
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Expected net additional operating expenses for FY2008 $1.4 million
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Diluted earnings per share revision $0.02/share
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About lululemon athletica inc.
lululemon athletica (NASDAQ: LULU; TSX: LLL) is a yoga-inspired
athletic apparel company that creates components for people to live
longer, healthier and more fun lives. By producing products that help
keep people active and stress free, lululemon believes that the world
will be a better place. Setting the bar in technical fabrics and
functional designs, lululemon works with yogis and athletes in local
communities for continuous research and product feedback. For more
information, http://www.lululemon.com.
Forward-Looking Statements:
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 that involve risks,
uncertainties and assumptions, such as statements regarding our future
financial condition, financial results or results of operations, our
prospects and strategies for future growth, both in North America and
internationally, the development and introduction of new products, and
the implementation of our marketing and branding strategies. In many
cases, you can identify forward-looking statements by terms such as
"may," "will," "should," "expects," "plans," "anticipates,"
"believes," "intends," "estimates," "predicts," "potential" or the
negative of these terms or other comparable terminology. These
forward-looking statements are based on management's current
expectations but they involve a number of risks and uncertainties.
Actual results and the timing of events could differ materially from
those anticipated in the forward-looking statements as a result of
risks and uncertainties, which include, without limitation: the
possibility that we may not be able to manage operations at our
current size or manage growth effectively; the possibility that we may
not be able to identify suitable locations to open new stores or
attract customers to our stores; the possibility that we may not be
able to successfully expand in the United States or in other markets,
or expand into new markets; the possibility that a general economic
slowdown could adversely affect our results of operations and growth
plans; increasing competition, which may cause us to reduce the prices
of our products or to increase significantly our marketing efforts to
avoid losing market share; the possibility that we may not be able to
continually innovate and provide our consumers with improved products;
and other risk factors detailed in our filings with the Securities and
Exchange Commission, including the risk factors contained in our
fiscal 2007 Annual Report on Form 10-K filed with the SEC and other
filings we make with the SEC. Our filings with the SEC are available
at http://www.sec.gov. You are urged to consider these factors
carefully in evaluating the forward-looking statements herein and are
cautioned not to place undue reliance on such forward-looking
statements, which are qualified in their entirety by this cautionary
statement. The forward-looking statements made herein speak only as of
the date of this current report and the Company undertakes no
obligation to publicly update such forward-looking statements to
reflect subsequent events or circumstances.
Source: lululemon athletica inc.