VANCOUVER, British Columbia--(BUSINESS WIRE)--
lululemon athletica inc. [NASDAQ:LULU] today announced that the Company
is updating its net revenue and earnings guidance for the fourth quarter
of fiscal 2014 ending February 1, 2015.
For the fourth quarter, the Company now anticipates that net revenue
will be in the range of $595 million to $600 million based on a total
comparable sales increase between 6 to 7% on a constant dollar basis.
This compares to the Company's previous guidance of net revenue in the
range of $570 million to $585 million for the fourth quarter based on a
total comparable sales increase in the low single digits on a constant
dollar basis. The Company also now expects diluted earnings per share
will be in the range of $0.71 to $0.73 for the fourth quarter. The
previous EPS guidance for the fourth quarter was a range of $0.65 to
$0.69. EPS guidance continues to assume 142.6 million diluted
weighted-average shares outstanding and a 30.2% tax rate.
“Backed by improving trends and strong holiday results, we are entering
2015 in very good shape. Our guests are responding positively to both
the women’s and men’s product assortment, and with the build-out of our
senior leadership team near completion, I feel confident in our ability
to execute on our growth strategies,” said Laurent Potdevin, CEO of
lululemon athletica.
“Building on our current momentum, our team is relentless in driving the
business forward. With that, over the coming year, we will complete the
critical foundational business improvements already underway while also
making disciplined, strategic investments in our brand, product, guest
experience and international expansion efforts, with the expectation
that we will begin to see operating margin leverage in 2016,” continued
Potdevin.
Management will be meeting with analysts and investors and presenting at
the ICR XChange Conference in Orlando, Florida this week. See the
Company's separate press release dated December 29, 2014 for webcast
information.
About lululemon athletica inc.
lululemon athletica (NASDAQ:LULU) is a yoga-inspired athletic apparel
company that creates components for people to live long, healthy and 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 Measures
Total comparable sales in constant dollars is not a United States
generally accepted accounting principle (“GAAP”) performance measure. We
provide constant dollar total comparable sales because we use this
measure to understand the underlying growth rate of revenue excluding
the impact of changes in foreign exchange rates, which are not under
management’s control. We believe that disclosing this measure on a
constant dollar basis is useful to investors because it enables them to
better understand the level of growth of our business. The presentation
of this financial information is not intended to be considered in
isolation or as a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP.
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 and our prospects and strategies for
future growth. 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:
our ability to maintain the value and reputation of our brand, including
any negative publicity regarding our products or the production methods
of our suppliers or manufacturers; the acceptability of our products to
our guests, including receiving products that comply with our technical
specifications and quality standards; our reliance on and limited
control over third-party suppliers to provide fabrics for and to produce
our products; an economic downturn or economic uncertainty in our key
markets; our exposure to various types of litigation; increasing product
costs and decreasing selling prices; our ability to anticipate consumer
preferences and successfully develop and introduce new, innovative and
updated products; our ability to accurately forecast customer demand for
our products; any unforeseen disruption of our information systems; any
material disruption of our information systems; our ability to manage
our growth and the increased complexity of our business effectively; the
fluctuating costs of raw materials; our ability to expand
internationally in light of our limited operating experience and limited
brand recognition in new international markets; our highly competitive
market and increasing competition; our ability to deliver our products
to the market and to meet customer expectations if we have problems with
our distribution system; our ability to protect our intellectual
property rights; our ability to cancel store leases if an existing or
new store is not profitable; increasing labor costs and other factors
associated with the production of our products in China or other
countries; our ability to successfully open new store locations in a
timely manner; our ability to comply with trade and other regulations;
the continued service of our senior management; seasonality;
fluctuations in foreign currency exchange rates; the operations of many
of our suppliers are subject to international and other risks; our
ability to source our merchandise profitably or at all; and other risks
and uncertainties set out in filings made from time to time with the
United States Securities and Exchange Commission and available at www.sec.gov,
including, without limitation, our most recent reports on Form 10-K and
Form 10-Q. 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 we undertake no obligation to
publicly update such forward-looking statements to reflect subsequent
events or circumstances, except as may be required by law.
Investor:
ICR, Inc.
Joseph Teklits/Jean Fontana,
203-682-8200
or
Media:
ICR, Inc.
Alecia
Pulman, 203-682-8224
Source: lululemon athletica inc.