Oct 26, 2009
Lululemon ups third quarter earnings, sales outlook
Oct 26, 2009
VANCOUVER, British Columbia, Oct 26 (Reuters) - Lululemon Athletica (LLL.TO) (LULU.O) raised its earnings and revenue guidance for the third quarter on Monday 26 October because of strong demand for its core yoga clothing and athletic gear as well as its new apparel lines.
Lululemon Spring 2009
Vancouver-based Lululemon now expects diluted earnings per share of between 17 cents and 19 cents a share for the three months ending Nov. 1. Previously, it had forecast earnings in a range of 11 cents to 13 cents a share.
It forecast revenues of between $110 million and $112 million in the third quarter, up from previous guidance of between $95 million and $100 million.
Same-store sales in the third quarter are expected to show a "high-single digit increase" on a constant dollar basis, compared with an earlier, relatively flat forecast, the company said.
"Our sourcing and production strategies designed to chase inventory and keep pace with renewed sales momentum proved to be very effective during this fall season," Lululemon Chief Executive Christine Day said in a statement.
She said that "staying in stock in our core items, as well as our new running line and seasonal outerwear offerings" had stimulated good demand.
Lululemon's stock closed 82 Canadian cents firmer at C$27.39 on the Toronto Stock Exchange on Monday 26 October. It added 38 cents, or 1.5 percent, to $25.71 on Nasdaq.
($1=$1.07 Canadian) (Reporting by Nicole Mordant; editing by Rob Wilson)
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