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VANCOUVER, British Columbia--(BUSINESS WIRE)--
lululemon athletica inc. [NASDAQ:LULU; TSX:LLL] today announced
financial results for the first quarter ended May 5, 2013. lululemon
also announced today that after a five and half year tenure Christine
Day will step down as the Company's Chief Executive Officer when a
successor is named. The Board has formed a search committee and enacted
its CEO succession plan. Ms. Day's decision is being announced at this
time so the Board has the benefit of a healthy transition period, and
can openly use that time for a thorough search for the next CEO.
"Being a part of lululemon for the past five and a half years has been
an incredible journey. I am proud of building a world class team that
has produced one of the best growth, brand and profit stories in
retail," said Ms. Day. "Plans have been laid for the next five years and
a vision set for the next ten. Now is the right time to bring in a CEO
who will drive the next phase of lululemon's development and growth. I
will continue to actively lead the organization while the Board searches
for a new CEO, and will work to ensure a smooth transition."
"Christine has been an exceptional leader for lululemon, successfully
embracing the culture while growing the business and returning value to
all of our stakeholders including our guests, employees, partners and
shareholders," said Chip Wilson, Chairman of the lululemon Board of
Directors. "I thank Christine for her leadership, contributions and
commitment to lululemon. I am confident that we will find the right
person to lead this strong team and continue to build on this excellent
RESULTS FOR THE FIRST QUARTER ENDED MAY 5, 2013
Commenting on events of the first quarter Ms. Day added: "The past
quarter has been one of the most important in our company's history.
While we regret that we had quality issues with our black luon we are
proud of the organization's ability to get luon delivered back into our
stores within 90 days of having pulled it from our line, all the while
keeping our guests happy and engaged with the brand."
For the first quarter ended May 5, 2013:
The Company ended the first quarter of fiscal 2013 with $588.4 million
in cash and cash equivalents compared to $424.3 million at the end of
the first quarter of fiscal 2012. Inventory at the end of the first
quarter of fiscal 2013 totaled $143.7 million compared to $107.7 million
at the end of the first quarter of fiscal 2012. The Company ended the
quarter with 218 stores in North America and Australia.
For the second quarter of fiscal 2013, we expect net revenue to be in
the range of $340 million to $345 million based on a comparable-store
sales percentage increase of 5% to 7% on a constant-dollar basis.
Diluted earnings per share are expected to be in the range of $0.33 to
$0.35 for the quarter. This assumes 146.0 million diluted
weighted-average shares outstanding and a 30.0% tax rate.
For the full fiscal 2013, we now expect net revenue to be in the range
of $1,645 million to $1,665 million and diluted earnings per share are
expected to be in the range of $1.96 to $2.01 for the full year. This
assumes 146.2 million diluted weighted-average shares outstanding and a
tax rate of 30.0%.
Voluntarily Delist from Toronto Stock Exchange
The Company has provided written notice to the Toronto Stock Exchange
("TSX") regarding the delisting of its common stock. The Company
anticipates that its common stock will be delisted from the TSX at the
close of trading on June 24, 2013. The Company believes that the minimal
trading volume of its shares on the TSX no longer justifies the expenses
and administrative efforts associated with maintaining this dual
listing. The Company's listing with NASDAQ provides its shareholders
with sufficient liquidity, as NASDAQ accounts for nearly all of the
Company's current trading volume. Further, administrative and regulatory
efficiencies will be achieved by focusing on the single listing. The
Company's common stock will continue to be listed and trade on NASDAQ
and its Canadian shareholders will be able to continue to trade through
their brokers on that market.
Conference Call Information
A conference call to discuss first quarter results is scheduled for
today, June 10, 2013, at 4:30 p.m. EST. Those interested in
participating in the call are invited to dial 1-877-303-3203
approximately 10 minutes prior to the start of the call. The conference
call will also be webcast live at www.lululemon.com.
The webcast will be accessible on our website for approximately 30 days
after the call.
About lululemon athletica inc.
lululemon athletica (NASDAQ:LULU; TSX:LLL) is a yoga-inspired athletic
apparel company that creates components for people to live long, healthy
and fun lives. By producing products that help keep people active and
stress free, lululemon believes that the world will be a better place.
Setting the bar in technical fabrics and functional designs, lululemon
works with yogis and athletes in local communities for continuous
research and product feedback. For more information, visit www.lululemon.com.
Non-GAAP Financial Measure
Constant-dollar net revenue changes, which exclude the impact of changes
in foreign exchange rates, is not a United States Generally Accepted
Accounting Principle ("GAAP") performance measure. We provide
constant-dollar net revenue changes because we use the measure to
understand the underlying growth rate of revenue excluding the impact on
a quarter-by-quarter basis of changes in foreign exchange rates, which
are not under management's direct control. We believe that disclosing
net revenue changes on a constant-dollar basis is useful to investors
because it enables them to better understand the level of growth of our
The presentation of this financial information is not intended to be
considered in isolation or as a substitute for, or superior to, the
financial information prepared and presented in accordance with GAAP.
For more information on this non-GAAP financial measure, please see the
table captioned "Reconciliation of Non-GAAP Financial Measure — Constant
dollar changes" included in the accompanying financial tables, which
includes more detail on the GAAP financial measure that is most directly
comparable to non-GAAP financial measures and the related
reconciliations between these financial measures.
This press release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934 that involve risks, uncertainties
and assumptions, such as statements regarding the effect of shipments of
products that fail to comply with our technical specifications or that
fail to conform to our quality control standards, the duration of any
shortage of products available for sale in our stores or for delivery to
guests or our ability to obtain replacement products in a timely manner,
any expected loss of net revenue resulting from the inability to sell
those products and related increased administrative and shipping costs,
and our future financial condition or results of operations. In many
cases, you can identify forward-looking statements by terms such as
"may," "will," "should," "expects," "plans," "anticipates," "outlook,"
"believes," "intends," "estimates," "predicts," "potential" or the
negative of these terms or other comparable terminology. These
forward-looking statements are based on management's current
expectations but they involve a number of risks and uncertainties.
Actual results and the timing of events could differ materially from
those anticipated in the forward-looking statements as a result of risks
and uncertainties, which include, without limitation: our reliance on
and limited control over third-party suppliers to provide fabrics for
and to produce our products; negative publicity regarding any of our
products or our the production methods of any of our suppliers or
manufacturers; the effects of shipments of products that fail to comply
with our technical specifications or that fail to conform to our quality
standards; the effects of a shortage of products available for sale in
our stores or for delivery to guests; an economic downturn or economic
uncertainty in our key markets; increasing product costs and decreasing
selling prices; our inability to anticipate consumer preferences and
successfully develop and introduce new, innovative and updated products;
our inability to accurately forecast customer demand for our products;
our inability to manage our growth and the increased complexity of our
business effectively; the fluctuating costs of raw materials; our highly
competitive market and increasing competition; an unforeseen disruption
of our information systems; our inability to deliver our products to the
market and to meet customer expectations due to problems with our
distribution system; our inability to cancel store leases if an existing
or new store is not profitable; increasing labor costs and other factors
associated with the production of our products in China; our inability
to successfully open new store locations in a timely manner; our failure
to maintain the value and reputation of our brand; our failure to comply
with laws related to our human resources policies or other procedures;
our failure to comply with trade and other regulations; our competitors
manufacturing and selling products based on our fabrics and
manufacturing technology at lower prices than we can; our failure to
protect our intellectual property rights; and other risks and
uncertainties detailed in our Annual Report on Form 10-K for the fiscal
year ended February 3, 2013 filed with the Securities and Exchange
Commission and available at www.sec.gov.
You are urged to consider these factors carefully in evaluating the
forward-looking statements contained herein and are cautioned not to
place undue reliance on such forward-looking statements, which are
qualified in their entirety by these cautionary statements. The
forward-looking statements made herein speak only as of the date of this
press release and the company undertakes no obligation to publicly
update such forward-looking statements to reflect subsequent events or
Condensed Consolidated Statements of Operations
Expressed in thousands, except per share amounts
May 5, 2013
April 29, 2012
Income from operations
Condensed Consolidated Balance Sheets
Expressed in thousands
May 5, 2013
lululemon athletica inc.
Condensed Consolidated Statements of Cash Flows
Reconciliation of Non-GAAP Financial Measure
Store Count and Square Footage1
Thirteen weeks ended May 5, 2013
Square Footage Expressed in Thousands
at the End of
1 Store count and square footage summary includes
corporate-owned stores which are branded lululemon athletica and ivivva
2 Number of stores opened during the quarter that are branded
lululemon athletica and ivivva athletica.
3 Gross square feet added/lost during the quarter includes
net square foot additions for corporate-owned stores which have been
renovated or relocated in the quarter.
Investor Contact:ICR, Inc.Joseph Teklits/Jean Fontana203-682-8200orMedia
Contact:ICR, Inc.Alecia Pulman203-682-8224
Source: lululemon athletica inc.
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