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News Breaks
June 11, 2014
12:48 EDTLULU, VFC, 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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October 24, 2014
06:15 EDTVFCVF Corp. executive could become next Aldo Group CEO, WSJ reports
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October 22, 2014
15:27 EDTLULUlululemon management to meet with William Blair
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04:57 EDTLULUlululemon partners with Dalai Lama Center
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October 20, 2014
10:44 EDTVFCVF Corp dips lower after Q3 earnings miss consensus expectations
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09:17 EDTVFCVF Corp. says 'on track' to add 150 new stores this year
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09:09 EDTVFCVF Corp. says 'on track' to achieve FY14 growth expectations
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07:03 EDTVFCVF Corp. raises FY14 EPS view to $3.08 from $3.06
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07:01 EDTVFCVF Corp. increases quarterly dividend 22% to 32c per share
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07:01 EDTVFCVF Corp. reports Q3 EPS $1.08, consensus $1.09
Reports Q3 revenue $3.5B, consensus $3.57B.
October 19, 2014
20:07 EDTADDYYInvestor group planning $2.2B offer for Adidas' Reebok business, WSJ says
A group of investors from Hong Kong and Abu Dhab are putting together a deal to buy Reebok from Adidas, says the Wall Street Journal. The investors plan to offer Adidas $2.2B for its Reebok business, added the Wall Street Journal. Reference Link
October 17, 2014
08:39 EDTVFCVF Corp. management to meet with JPMorgan
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October 16, 2014
10:01 EDTLULUOn The Fly: Analyst Downgrade Summary
Today's noteworthy downgrades include: Akamai (AKAM) downgraded to Market Perform from Outperform at Wells Fargo... CGG SA (CGG) downgraded to Reduce from Neutral at Nomura... Central Valley Community (CVCY) downgraded to Hold from Buy at Sandler O'Neill... DSM (RDSMY) downgraded to Neutral from Buy at Nomura... Disney (DIS) downgraded at Guggenheim... Francesca's (FRAN) downgraded to Underperform from Outperform at Macquarie... Netflix (NFLX) downgraded to Fair Value from Buy at CRT Capital... Nordstrom (JWN) downgraded to Neutral from Outperform at Macquarie... Norfolk Southern (NSC) downgraded at Credit Suisse... Rio Tinto (RIO) downgraded to Market Perform at Cowen... Seadrill (SDRL) downgraded to Reduce from Neutral at Nomura... Ternium (TX) downgraded to Neutral from Overweight at JPMorgan... Urban Outfitters (URBN) downgraded to Neutral from Outperform at Macquarie... Viacom (VIAB) downgraded at BofA/Merrill... eBay (EBAY) downgraded to Underperform from Buy at CLSA... lululemon (LULU) downgraded to Underperform from Neutral at Macquarie.
05:39 EDTLULUlululemon downgraded to Underperform from Neutral at Macquarie
Macquarie downgraded lululemon to Underperform after assuming coverage of the stock saying the company's expansion into Asia and Europe will drive a meaningful increase in spending. The firm lowered its price target for shares to $34 from $40.
October 13, 2014
14:02 EDTLULUlululemon's Q3 sales tracking below consensus, says ITG Research
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October 12, 2014
17:10 EDTVFCVF Corp. shares could rise 25%, Barron's says
VF Corp. shares could rise 25%, according to UBS analyst Michael Binetti, driven by a 15% earnings increase in FY15, Barron's contends in a feature article, citing Michael Binetti. Reference Link

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