VANCOUVER, British Columbia--(BUSINESS WIRE)--
lululemon athletica inc. [NASDAQ: LULU; TSX: LLL] today announced that
the Company is raising its guidance for the fourth quarter of fiscal
2010 ending January 30, 2011.
For the fourth quarter of fiscal 2010, the Company now expects diluted
earnings per share to be in the range of $0.55 to $0.57 as compared to
its previous guidance range for diluted earnings per share of $0.46 to
$0.48. The Company's improved guidance reflects stronger than
anticipated net revenues for the quarter.
The Company now expects net revenue to be in the range of $237 million
to $239 million for the fourth quarter of fiscal 2010. This compares to
the Company's previous guidance of net revenue in the range of
$210 million to $215 million for the quarter, and compares to net
revenue of $161 million for the fourth quarter of fiscal 2009.
Comparable-store sales for the fourth quarter of fiscal 2010 are
expected to reflect a mid- to upper-twenties percentage increase on a
constant-dollar basis. This compares to the Company's previous guidance
of high teens comparable-store sales for the fourth quarter of fiscal
2010.
Christine Day, lululemon's CEO stated: "We are wrapping up another
record year for lululemon, one in which we were able to drive strong
earnings growth due to exceptional results across our retail and
e-commerce channels. In 2010, we were able to strengthen our brand
awareness while making key investments for the future. We will be
chasing inventory for the remainder of the fourth quarter and into the
spring season, and in the near term will be focused once again on
matching supply with demand. For fiscal 2011, our plans remain to open
20-25 stores while making key strategic investments to support our long
term growth trajectory."
The Company has also announced that management will be presenting at the
ICR XChange Conference on Wednesday, January 12, 2011 in Dana Point,
California. See separate release for webcast information.
The Company is providing this information in light of the significant
expected outperformance of its original fourth quarter guidance provided
in conjunction with the announcement of the Company's third quarter
results on December 9, 2010. Investors should not expect the Company to
provide regular interim quarterly updates of guidance or outlook
information in advance of quarterly earnings announcement dates.
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,
visit www.lululemon.com.
Non-GAAP Financial Measure
Constant-dollar net revenue changes, which exclude the impact of changes
in foreign exchange rates, is not a United States Generally Accepted
Accounting Principle ("GAAP") performance measure. We provide
constant-dollar net revenue changes because we use the measure to
understand the underlying growth rate of revenue excluding the impact on
a quarter-by-quarter basis of changes in foreign exchange rates, which
are not under management's direct control. We believe that disclosing
net revenue changes on a constant-dollar basis is useful to investors
because it enables them to better understand the level of growth of our
business.
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 or results of operations, our prospects and strategies for
future growth, 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," "outlook,"
"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; risks that consumer spending may continue to
decline and that U.S. and global macroeconomic conditions may worsen;
the possibility that levels of comparable-store sales or average sales
per square foot will decline; the possibility that we may not be able to
successfully expand in the United States and other new markets;
increased competition causing us to reduce the prices of our products or
to increase significantly our marketing efforts in order to avoid losing
market share; the possibility that we may not be able to continually
innovate and provide our consumers with improved products; the
possibility that our suppliers or manufacturers may not produce or
deliver our products in a timely or cost-effective manner; and other
risk factors detailed in our Annual Report on Form 10-K for the fiscal
year ended January 31, 2010 filed with the Securities and Exchange
Commission and available at www.sec.gov.
You are urged to consider these factors carefully in evaluating the
forward-looking statements contained herein and are cautioned not to
place undue reliance on such forward-looking statements, which are
qualified in their entirety by these cautionary statements. The
forward-looking statements made herein speak only as of the date of this
press release and the company undertakes no obligation to publicly
update such forward-looking statements to reflect subsequent events or
circumstances.
Source: lululemon athletica inc.