Lululemon Athletica Inc. said in a filing on Friday that it is
shrinking the size of its initial public offering by nearly 10 percent,
to 16.4 million shares from 18.2 million. In the filing with the U.S.
Securities and Exchange Commission, the company maintained the stock
price range of between $10 and $12. The investors plan to sell 14.1
million shares, down from an earlier
plan for 15.9 million. The company said it still expects to sell about
2.3 million.

Vancouver-based Lululemon, which is concurrently offering its common
stock in Canada, expects the offering to price between US$10 and US$12
per share. The offering will now generate proceeds of between $164
million and $196.8 million, down from $182 million to $218.4 million.

The underwriters have been given the option to buy up to 2.7 million
more shares from the selling stockholders to cover over-allotments.

According to a regulatory filing with the U.S. Securities and Exchange
Commission, the company said it still expects to have 75.3 million
shares outstanding after the offering.

Lululemon, which operates a chain of 57 clothing stores, said it plans
to use proceeds from the offering to fund new store openings, working
capital and for other general corporate purposes. For fiscal 2007 and
2008, Lululemon has budgeted $28 million to $34 million to open new
stores.