earnings of 2.40 next year, divvy likely higher because of non cash depreciation......stock back to 35.00
Earnings Preview: lululemon shares down 10% YTD ahead of Q3 results
Lululemon Athletica (LULU) is scheduled to report Q3 before the market open on Thursday, December 12, with a conference call scheduled for 9:00 am ET. Lululemon is a designer and retailer of yoga-inspired apparel operating primarily in North America and Australia. EXPECTATIONS: Analysts are looking for EPS of 41c on revenue of $376.14M, according to First Call. The consensus range for EPS is 39c-43c on revenue of $367.15M-$388.55M. LAST QUARTER: Lululemon reported Q2 EPS of 39c against estimates for 35c on revenue of $344.5M against estimates for $342.99M; same-store sales increased 8%. The company forecast Q3 EPS of 39c-41c on revenue of $370M-$375M, with a comparable-store sales percentage increase in the mid-single digits on a constant-dollar basis. Additionally, lululemon guided FY13 EPS $1.94-$1.97 on revenue of $1.625B-$1.635B. On its Q2 earnings conference call, lululemon said Q3 was off to a "weak start" driven primarily by late deliveries of fall products "leaving us with a summer product on the floor through August." NEWS: The company recently appointed Laurent Potdevin as the company’s CEO and a member of its board. Potdevin, who previously served as president of TOMS Shoes, will succeed Christine Day, who has served as the company’s CEO since 2008 and who announced her intention to resign in June. Chip Wilson, lululemon’s founder and the chairman of its board, informed the board that he is resigning from the position of non-executive chairman. The board selected Michael Casey, lead director, as the next chairman of the board. Wilson came under fire in November after saying in an interview that women's bodies may be to blame for problems with the luxury workout wear. Wilson publicly apologized for his comments, saying he was "sad for the repercussions of [his] actions". Lululemon said it felt a securities fraud lawsuit claiming that the company meant to sell hundreds of thousands of nearly sheer yoga pants should get thrown out. The company said it did not hope the defect "would remain undiscovered" if customers wore the pants as intended. STREET RESEARCH: Sterne Agee believes that lululemon's new CEO's lack of public company experience and lack of retail experience may offset what appears to be his strong operational background at better brands. Oppenheimer said it expects the CEO pick to be viewed positively, given his fitness/lifestyle executive experience; Credit Suisse also viewed the selection positively. During the quarter, shares of the stock were initiated with a Neutral rating at Mizuho and with an Overweight rating at JP Morgan. The stock was downgraded at Sterne Agee to Underperform from Neutral, as the firm believes comments from founder Wilson "alienated" customers and sees decelerated 2014 same-store sales trends in 2014. PRICE ACTION: Over the last three months, lululemon shares are up down almost 1%. Year-to-date, shares are up down about 10%. Ahead of tomorrow's earnings, shares are down almost 1% in mid-day trading.
ANF type reaction, the comments about customer bodies being the blame is so similar to ANF head saying heavy set people shouldn't wear ANF clothes.........what bone head comments! LOL
some have traded over 5900 contracts already
New head guy sounds like a second rate head, i'm sure they couldn't get anyone to take the job as they all see it as a sinking ship!