lululemon athletica inc. Updates Guidance for Fourth Quarter of Fiscal 2016 Ahead of Presentation at the ICR Conference
January 09 2017 - 6:00AM
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 2016 ending January 29, 2017.
For the fourth quarter, we now anticipate that net revenue will
be in the range of $775 million to $785 million based on a total
comparable sales increase in the mid-single digits on a constant
dollar basis. This compares to our previous guidance of net revenue
in the range of $765 million to $785 million for the fourth quarter
based on a total comparable sales increase in the mid-single digits
on a constant dollar basis.
We also now expect diluted earnings per share will be in the
range of $0.99 to $1.01 for the fourth quarter. The previous EPS
guidance for the fourth quarter was a range of $0.96 to $1.01. EPS
guidance continues to assume 137.3 million diluted weighted-average
shares outstanding and a 31.2% tax rate.
"We had a strong holiday season in both our store and digital
channels driven by our assortment, operational execution and guest
experience. Our entire team is excited about the momentum in
the business and I am grateful to our global collective for their
great work and enthusiasm. We look forward to 2017 as we continue
to advance on our long term goals," said Laurent Potdevin, CEO of
lululemon.
Management will be meeting with analysts and investors and
presenting at the ICR Conference in Orlando, Florida this week. The
audio portion of the presentation will be webcast live at
www.lululemon.com. The webcast can be found in the investor
relations section of the Company's website.
About lululemon athletica inc.
lululemon athletica inc. (NASDAQ:LULU) is a healthy lifestyle
inspired athletic apparel company for yoga, running, training, and
most other sweaty pursuits, with products that create
transformational experiences for people to live happy, healthy, fun
lives. 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
A constant dollar change in total comparable sales is not a
United States generally accepted accounting principle ("GAAP")
financial measure.
A constant dollar basis assumes the average foreign exchange
rates for the current period remained constant with the average
foreign exchange rates for the same period of the prior year. We
provide the constant dollar change in total comparable sales
because we use this measure to understand the underlying growth
rate of net revenue excluding the impact of changes in foreign
exchange rates. 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 with
greater prominence 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 highly competitive market and increasing
competition; 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;
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; our ability
to safeguard against security breaches with respect to our
information technology 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 ability to deliver
our products to the market and to meet customer expectations if we
have problems with our distribution system; imitation by our
competitors; our ability to protect our intellectual property
rights; changes in tax laws or unanticipated tax liabilities,
capital or financing needs in the United States, or our intentions
with respect to the reinvestment of foreign earnings; 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 South and South East Asia;
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; our
exposure to various types of litigation; actions of activist
stockholders; 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.
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Investors:ICR, Inc.Joseph Teklits/Caitlin Morahan,
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