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News Breaks
June 11, 2014
12:48 EDTLULU, ADDYY, VFCEarnings 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 lululemonís strategy to strengthen the Companyís 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 Potdevinís 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, lululemonís Board members are aligned with the companyís 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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September 3, 2015
08:38 EDTLULULululemon September weekly volatility elevated into Q2 and outlook
Lululemon 9/11/15 weekly call option implied volatility is at 76, September is at 64, October is at 49; compared to its 52-week range of 25 to 63, suggesting large near term price movement into the expected release of Q2 results on September 10.
07:39 EDTLULUlululemon added to Best Ideas List at Wedbush
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September 2, 2015
08:02 EDTLULUlululemon checks positive, says Bernstein
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06:22 EDTLULUNew Balance to enter 'athleisure' sector, Business Insider reports
New Balance is launching a new "athleisure" line and is planning to mail a catalog to more than 1M U.S. women, Business Insider reports, citing comments from Norma Delaney, head of global marketing for NB Women. The line will compete with offerings from Lululemon (LULU), Under Armour (UA), Victoria's Secret (LB) and Dick's Sporting Goods (DKS). Reference Link
August 28, 2015
07:12 EDTLULUWilliam Blair names 21 stocks best positioned for volatile markets
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August 27, 2015
07:56 EDTLULULululemon September weekly volatility elevated into Q2 and outlook
Lululemon 9/11/15 weekly call option implied volatility is at 66, September is at 61, October is at 48; compared to its 52-week range of 25 to 63, suggesting large near term price movement into the expected release of Q2 results on September 10.
07:52 EDTLULUBarclays would be a buyer of lululemon into the Q2 report
Barclays analyst Matt McClintock believes lululemon will report meaningful upside to his 7.7% total comp estimate when it reports Q2 earnings on September 10. Channel checks suggest a strong consumer response to new tops introduced in Q2 with stock outs above 50%, promising Google search activity, and momentum in men's. McClintock believes his earnings estimates will prove conservative and is a buyer into the report. Barclays' rates lululemon an Overweight with an $85 price target on shares.
August 21, 2015
07:37 EDTVFCVF Corp. on track for strongest growth in three years, says UBS
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