lululemon athletica inc. Updates Guidance for the Fourth Quarter of Fiscal 2018 Ahead of the ICR Conference
January 14 2019 - 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 2018 ending February 3, 2019.
For the fourth quarter of fiscal 2018, we now anticipate that
net revenue will be in the range of $1.140 billion to $1.150
billion based on a total comparable sales increase in the
mid-to-high teens on a constant dollar basis. This compares to our
previous guidance of net revenue of $1.115 billion to $1.125
billion based on a total comparable sales increase in the
high-single to low-double digits on a constant dollar basis.
We now expect diluted earnings per share will be in the range of
$1.72 to $1.74 for the fourth quarter based on a 30% effective tax
rate. This compares to our previous diluted earnings per share
guidance of $1.64 to $1.67 based on a 30% effective tax
rate.
This guidance does not include certain discrete tax expenses
related to U.S. tax reform and repatriation which we expect to
recognize during the fourth quarter. This guidance also excludes
the expected tax benefit from recent changes in legislation and
guidance related to global intangible low-taxed income ("GILTI")
taxes. We are in the process of quantifying these items.
Our revised guidance for the fourth quarter continues to assume
133.0 million diluted weighted-average shares outstanding.
"The momentum in our business remained strong throughout the
holiday season, reflecting the ongoing success of our product
offerings and our connection with guests around the globe. I speak
for the entire leadership team in thanking all our teams around the
world for delivering a strong 2018," said Calvin McDonald, CEO of
lululemon.
Management will be meeting with analysts and investors at the
ICR Conference in Orlando, Florida on January 14 and January 15,
2019.
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, creating transformational products and
experiences which enable people to live a life they
love. 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.
Forward-Looking Statements:
This press release includes estimates, projections, statements
relating to our business plans, objectives, and expected operating
results that are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, Section 27A
of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. 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 also include our guidance and outlook statements. These
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; the acceptability
of our products to our guests; the impact of changes in tax laws,
including U.S. tax reform and repatriation as well as changes in
GILTI taxes; unanticipated tax liabilities; 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 guest 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 have
technology-based systems function effectively and grow our
e-commerce business globally; changes in consumer shopping
preferences and shifts in distribution channels; 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 guest expectations if we
have problems with our distribution system; imitation by our
competitors; our ability to protect our intellectual property
rights; our ability to manage our growth and the increased
complexity of our business effectively; our ability to cancel store
leases if an existing or new store is not profitable; our ability
to source our merchandise profitably or at all if new trade
restrictions are imposed or existing trade restrictions become more
burdensome; increasing labor costs and other factors associated
with the production of our products in South and South East Asia;
the operations of many of our suppliers are subject to
international and other risks; our ability to successfully open new
store locations in a timely manner; our ability to comply with
trade and other regulations; the service of our senior management;
seasonality; fluctuations in foreign currency exchange rates;
conflicting trademarks and the prevention of sale of certain
products; our exposure to various types of litigation; actions of
activist stockholders; anti-takeover provisions in our certificate
of incorporation and bylaws; 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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version on businesswire.com: https://www.businesswire.com/news/home/20190114005246/en/
Investor:lululemon athletica inc.Howard
Tubin1-604-732-6124orICR, Inc.Joseph Teklits/Caitlin
Morahan1-203-682-8200
Media:lululemon athletica inc.Erin
Hankinson1-604-732-6124orBrunswick GroupBlake
Sonnenshein1-212-333-3810
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