Lululemon athletica updating guidance for Q4 2015
For the fourth quarter, lululemon athletica now anticipates that net revenue will be in the range of $690 million to $695 million, which represents an increase of approximately 15% compared to the fourth quarter of fiscal 2014, or on a constant dollar basis, an increase of approximately 19%.
This is based on a total comparable sales increase in the high-single digits on a constant dollar basis. This compares to its previous guidance of net revenue in the range of $670 million to $685 million for the fourth quarter based on a total comparable sales increase in the mid-single digits on a constant dollar basis.
Lululemon athletica also now expects diluted earnings per share will be in the range of $0.78 to $0.80 for the fourth quarter. The previous EPS guidance for the fourth quarter was a range of $0.75 to $0.78. EPS guidance continues to assume 139.0 million diluted weighted-average shares outstanding and a 29.5% tax rate.
"We had a very successful holiday season driven by strong execution in stores and online during the key holiday weeks. Sales for the fourth quarter are exceeding expectations and gross margin rates and expenses remain in line with prior guidance.
"We are looking forward to 2016 and will enter the year with a very strong leadership team across the company that is relentlessly driving our strategic priorities and long term vision," said Laurent Potdevin, CEO of lululemon athletica. ■