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News Breaks
June 11, 2014
12:48 EDTVFC, LULU, ADDYYEarnings 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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February 20, 2015
10:01 EDTADDYYOn The Fly: Analyst Upgrade Summary
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07:14 EDTLULUOppenheimer to hold a tour
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05:37 EDTADDYYadidas upgraded to Hold from Sell at Deutsche Bank
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February 19, 2015
11:36 EDTVFCVF Corp. reaches settlement with RevoLaze in patent infringement case
RevoLaze, LLC, a laser technology firm headquartered in Westlake, OH, announced that it has reached a settlement and license agreement with VF Corporation regarding the patent infringement lawsuits filed with the International Trade Commission August 18, 2014 and Cleveland U.S. District Court on August 15, 2014 naming 17 denim jeans companies. The financial terms of the agreement are confidential.
09:38 EDTADDYYadidas searching for new CEO, Reuters reports
adidas' board has begun looking for a new CEO, the company's current CEO wrote to the company's employees, according to Reuters. Reference Link
February 18, 2015
10:42 EDTVFCApparel makers beyond Perry Ellis seen hurt by port slowdown
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February 17, 2015
18:43 EDTLULU, VFCApparel stocks lower after Perry Ellis warns of West Coast port disruption
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