Lululemon Athletica Inc. said it now expects fourth-quarter earnings between 55-57 cents a share for its fourth quarter ended Jan. 30, well above the yoga retailer's own projection for earnings of 46 to 48 cents. The company said its improved guidance reflects stronger than anticipated net revenues for the quarter.
Lululemon now expects net revenue to be in the range of $237 million to $239 million for the fourth quarter of fiscal 2010. This compares to the company's previous guidance of net revenue in the range of $210 million to $215 million for the quarter, and compares to net revenue of $161 million for the fourth quarter of fiscal 2009.
Comparable-store sales for the fourth quarter of fiscal 2010 are expected to reflect a mid- to upper-twenties percentage increase on a constant-dollar basis. This compares to the company's previous guidance of high teens comparable-store sales for the fourth quarter of fiscal 2010.
Christine Day, lululemon's CEO stated: “We are wrapping up another record year for lululemon, one in which we were able to drive strong earnings growth due to exceptional results across our retail and e-commerce channels. In 2010, we were able to strengthen our brand awareness while making key investments for the future. We will be chasing inventory for the remainder of the fourth quarter and into the spring season, and in the near term will be focused once again on matching supply with demand. For fiscal 2011, our plans remain to open 20-25 stores while making key strategic investments to support our long term growth trajectory.”
The company is providing this information in light of the significant expected outperformance of its original fourth quarter guidance provided in conjunction with the announcement of the company's third quarter results on Dec. 9, 2010.
