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News Breaks
June 11, 2014
12:48 EDTADDYY, VFC, LULUEarnings Preview: Lululemon quarter may not be 'defining' quarter in turnaround
Lululemon Athletica (LULU) is scheduled to report first quarter earnings before the market open on Thursday, June 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 earnings per share of 32c on revenue of $381.24M, according to First Call. The consensus range for EPS is 30c-38c on revenue of $376.55M-$403.7M. LAST QUARTER: Lululemon reported fourth quarter EPS of 75c against estimates for 72c on revenue of $521M against estimates for $515.11M. same-store sales decreased 2% on a constant dollar basis, and total SSS, including direct-to-consumer, increased 4% on a constant dollar basis. Looking ahead, the company forecast Q1 EPS of 31c-33c on revenue of $377M-$382M and flat total combined SSS on a constant dollar basis. The company also guided fiscal year 2014 EPS to $1.80-$1.90 and revenue of $1.77B-$1.82B on estimates for $1.90 and $1.78B, respectively. Total combined SSS for FY14 is expected to be in the low to mid single digits on a constant dollar basis. NEWS: On its Q4 earnings conference call, lululemon said SSS would gradually improve throughout the year from Q1, and said it expected Q1 SSS, excluding online, to be low single digit negative. At an "uneventful" analyst day meeting held in April, the yoga clothing maker did not provide updates on its mid-term or long-term financial objectives, according to research firm Sterne Agee. On April 18, Reuters said U.S. District Judge Katherine Forrest granted final dismissals of lawsuits which accused lululemon and various company officials of defrauding shareholders by hiding yoga pant defects. Reuters also noted that lululemon has been facing increased competition from rival yoga-wear retailers and department stores such as Gap (GPS), Athleta, VF Corp's lucy, Macy's (M) and others who are selling athletic-wear at lower prices and across more locations. On June 11, founder Chip Wilson announced that he voted against the re-election of Michael Casey and RoAnn Costin to the board of lululemon. He commented that he is "concerned that the Board is not aligned with the core values of product and innovation on which lululemon was founded and on which the company thrived. As a 27% shareholder in the company, I believe change is now needed at the Board level to increase shareholder value." Lululemon responded to Wilson, "The Board is overseeing lululemon’s strategy to strengthen the Company’s foundation, focus its product engine on innovation, and accelerate sustainable and controlled global expansion. By leveraging its design-led roots, strengthening its supply chain and providing an exceptional guest experience, we are confident that lululemon, under new CEO Laurent Potdevin’s leadership, will provide guests with the high-quality, technical products they know and love and create value for shareholders. Contrary to Mr. Wilson's assertions, lululemon’s Board members are aligned with the company’s core values and possess the necessary expertise to successfully lead lululemon forward." STREET RESEARCH: Canaccord, which expects in-line results and unchanged guidance, believes investors sentiment on lululemon is overly negative. Camilo Lyon, managing director of equity research at Canaccord Genuity said in a report that possible suitors of lululemon include VF Corp (VFC). and Adidas (ADDYY), the Globe and Mail reported on June 10. RBC Capital does not expect Q1 to be a defining quarter for the company's turnaround, but expects the company's comp trends to rebound sequentially throughout the year. ISI Group said in May that lululemon could be a potential takeover target for VF Corp.PRICE ACTION: Over the last three months, lululemon shares are down almost 9%. Year-to-date, shares are down almost 25%. Ahead of tomorrow's earnings, shares are down 2.5% in mid-day trading.
News For LULU;VFC;ADDYY From The Last 14 Days
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July 1, 2015
10:00 EDTADDYYOn The Fly: Analyst Upgrade Summary
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07:15 EDTADDYYadidas upgraded to Buy at UBS
As reported previously, UBS upgraded adidas to Buy from Neutral. The firm said the upgrade was driven by greater conviction on the outlook for Western Europe and an improving view on the rest of its business.
05:32 EDTADDYYadidas upgraded to Buy from Neutral at UBS
June 26, 2015
11:40 EDTADDYYNike hits 52-week high after strong Q4 results, positive analyst commentary
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10:23 EDTLULUAnalyst warns lululemon seeing increased competition in Canada
lululemon's (LULU) Canadian stores will probably be under pressure as new competitors have entered the company's core yoga apparel market there, research firm Macquarie warned in a note to investors earlier today. The firm highlighted one such competitor, Lole's Learning. WHAT'S NEW: Canada based Lole’s Learning and lululemon have similar products, similar prices, similar marketing events and similar store locations, Macquarie analyst Laurent Vasilescu reported. However, Lole's prices are "a tad more competitive," the analyst stated. Lole's started out as a wholesaler, but now has about 2,000 retail locations, many of which are within walking distance of lululemon stores, the analyst stated. Lole's has grown at a compound annual growth rate of 29% over the last five years, according to Vasilescu, who kept a $42 price target and Underperform rating on lululemon. WHAT'S NOTABLE: On June 9, lululemon reported slightly stronger than expected first quarter results and said that its U.S. stores were posting strong same-store sales trends in the initial weeks of Q2, while its Canadian stores were seeing positive Q2 comp trends. PRICE ACTION: In early trading, lululemon rose 1% to $68.29.
June 25, 2015
10:19 EDTLULUlululemon recalling women's tops with elastic draw cords due to injury hazard
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June 24, 2015
16:18 EDTVFCVF Corp. appoints Steven E. Rendle as COO
VF Corporation has appointed Steven E. Rendle as President & COO and elected him to VF’s board.
June 22, 2015
06:02 EDTLULUStocks with implied volatility below IV index mean; QIHU LULU
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