Edition:
United Kingdom

Lululemon Says Q2 Outlook Reflects Modest Impact From Potential New Tariffs - Conf Call


Thursday, 13 Jun 2019 

June 12 (Reuters) - Lululemon Athletica Inc ::OVER THE NEXT 5 YRS EXPECT ANNUAL GROWTH IN CORE WOMEN'S BUSINESS TO BE IN LOW DOUBLE DIGITS- CEO CALVIN MCDONALD, CONF CALL.OVER THE NEXT 5 YEARS, MEN'S IS PLANNED TO GROW AT 20% PER YEAR-CEO.IN Q1 CONTINUED TO SEE ROBUST PERFORMANCE IN WOMEN'S BUSINESS WITH PARTICULAR STRENGTH IN BOTTOMS, COMPS UP OVER 19% DRIVEN BY BOTH LEGGINGS AND JOGGER STYLES.OUR Q2 GUIDANCE REFLECTS A MODEST IMPACT FROM POTENTIAL NEW TARIFFS - PATRICK GUIDO, CFO.Q2 GUIDANCE REFLECTS ADDITIONAL COSTS TO AIRFREIGHT PRODUCTS IN ORDER TO AVOID ANTICIPATED PORT CONGESTION IN ASIA REGION DUE TO PENDING TARIFF INCREASES- CFO.NEGATIVE IMPACT OF THESE COSTS WILL BE ABOUT 20 TO 25 BASIS POINTS WITHIN GROSS MARGIN & ABOUT $0.04 TO $0.05 ON EPS FOR FY 2019-CFO.MOST OF THE IMPACT WOULD COME IN THE BACK HALF OF THE YEAR WITH THE MAJORITY IN Q3.