Newspaper article The Canadian Press

Yoga Wear Chain Lululemon Posts Better Than Expected Q2 Results, Raises Guidance

Newspaper article The Canadian Press

Yoga Wear Chain Lululemon Posts Better Than Expected Q2 Results, Raises Guidance

Article excerpt

Lululemon ups guidance, tops expectations

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VANCOUVER - Lululemon Athletica Inc. is looking to men for growth as the company moves to expand beyond its traditional market and grow internationally.

The Vancouver-based retailer plans to open a stand-alone men's store stocked with its trendy workout gear in New York this fall, kitty-corner to a new women's location.

"This will provide unique experiences for both men and women in spaces that are designed uniquely for their needs," Lululemon chief executive Laurent Potdevin told a conference call Thursday.

"I look forward to seeing how these two stores build a steady partnership while still making sure to one-up each other every now and then."

The New York store follows the opening of a glitzy new store in Vancouver this summer that offers a special section for men that makes custom shorts.

Shares in Lululemon gained US$5.34 or 14 per cent to close at US$43.73 on the Nasdaq market Thursday after the retailer reported better than expected earnings and increased its guidance slightly for the year.

The results, Potdevin said, were helped by better than expected sales of the company's offering of transitional clothes, meant to bridge the gap between its traditional summer and fall collections.

Lululemon, which keeps its books in U.S. dollars, said it expects revenue for its 2014 financial year to be in the rage of US$1.78 billion to $1.8 billion, up from a June forecast of between $1.77 billion and $1.8 billion, based on a total comparable sales increase in the low single digits on a constant-dollar basis.

The company said also raised its guidance for diluted earnings per share to between $1.51 and $1.56 for the year, up a penny from June.

The improved guidance came as Lululemon reported it earned $48.7 or 33 cents per diluted share on $390.7 million in revenue in its latest quarter, compared with $56. …

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