Lululemon cuts FY guidance despite Q3 profit hike

CANADA: Lululemon cuts FY guidance despite Q3 profit hike

Author: just-style.com | 12 December 2008

Yoga-inspired apparel company Lululemon Athletica Inc has warned of weaker sales and profit for the year, despite meeting its earnings expectations for the third quarter as sales soared 34%.

For the three months to 2 November, net income rose 11.4% to CAD8.8m (US$7.1m), or CAD0.13 per share, from CAD7.9m or CAD0.12 per share in the prior year period.

Net revenue jumped to CAD87.0m from CAD64.9m. Sales at corporate-owned stores were up 31% to CAD77.6m, with comparable store sales increasing 4% on a constant-dollar basis.

In its guidance, the Vancouver-based company cited trends in the macro environment and the weaker Canadian dollar for its revised outlook.

For the fourth quarter, net revenue is seen in the range of CAD90-95m based on a comparable store sales decline in the low double digits, and earnings per share in the range of CAD0.15 to CAD0.17.

For fiscal 2008, earnings per share are expected to be in the range of CAD0.55-CAD0.57, which is down from earlier guidance of CAD0.68-CAD0.71. It includes net revenue between CAD340m and CAD345m.

Sectors: Apparel, Finance, Retail

Companies: Lululemon