Lululemon Athletica inc. raised its guidance for the third quarter. The company now expects diluted earnings per share to be in the range of 17 cents a share to 19 cents a share as compared to its previous guidance range for diluted earnings per share of 11 cents to 13 cents. The company's improved guidance reflects stronger than anticipated net revenues for the quarter.
The company now expects net revenue to be in the range of $110 million to $112 million for the third quarter of fiscal 2009. This compares to the company’s previous guidance of net revenue in the range of $95 million to $100 million for the quarter, and compares to net revenue of $87.0 million for the third quarter of fiscal 2008. Comparable-store sales for the third quarter of fiscal 2009 are expected to reflect a high-single digit increase on a constant-dollar basis compared to the third quarter of fiscal 2008. This compares to the company’s previous guidance of relatively flat comparable store sales for the third quarter of fiscal 2009.
Christine Day, lululemon’s CEO stated: “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. By staying in stock in our core items, as well as our new running line and seasonal outerwear offerings, we have been able to satisfy strong guest demand and exceed our original revenue expectations for the quarter. We will continue to chase inventory and will also increase our reinvestment in the business to ensure that we are delivering the product and in-store experience that our guests have come to expect from lululemon.”
The company is providing this information in light of the significant expected outperformance of its original third quarter guidance provided in conjunction with the announcement of the Company’s second quarter fiscal results on September 10, 2009. Investors should not expect the company to provide regular interim quarterly updates of guidance or outlook information in advance of quarterly earnings announcement dates.
