lululemon athletica inc. Updates Guidance for Fourth Quarter of Fiscal 2015 Ahead of Presentation at the ICR Conference

VANCOUVER, British Columbia–(BUSINESS WIRE)–lululemon athletica inc. (NASDAQ:LULU) today announced that the Company
is updating its net revenue and earnings guidance for the fourth quarter
of fiscal 2015 ending January 31, 2016.

For the fourth quarter, we now anticipate that net revenue will be in
the range of $690 million to $695 million, which represents an increase
of approximately 15% compared to the fourth quarter of fiscal 2014, or
on a constant dollar basis, an increase of approximately 19%. This is
based on a total comparable sales increase in the high-single digits on
a constant dollar basis. This compares to our previous guidance of net
revenue in the range of $670 million to $685 million for the fourth
quarter based on a total comparable sales increase in the mid-single
digits on a constant dollar basis.

We also now expect diluted earnings per share will be in the range of
$0.78 to $0.80 for the fourth quarter. The previous EPS guidance for the
fourth quarter was a range of $0.75 to $0.78. EPS guidance continues to
assume 139.0 million diluted weighted-average shares outstanding and a
29.5% tax rate.

“We had a very successful holiday season driven by strong execution in
stores and online during the key holiday weeks. Sales for the fourth
quarter are exceeding expectations and gross margin rates and expenses
remain in line with prior guidance. We are looking forward to 2016 and
will enter the year with a very strong leadership team across the
company that is relentlessly driving our strategic priorities and long
term vision,” said Laurent Potdevin, CEO of lululemon athletica.

Management will be meeting with analysts and investors and presenting at
the ICR Conference in Orlando, Florida this week. The audio portion of
the presentation will be webcast live at
The webcast can be found in the investor relations section of the
Company’s website.

About lululemon athletica inc.

lululemon athletica inc. (NASDAQ:LULU) is a yoga-inspired athletic
apparel company with products that create transformational experiences
for people to live happy, healthy, fun lives. Setting the bar in
technical fabrics and functional designs, lululemon works with yogis and
athletes in local communities for continuous research and product
feedback. For more information, visit

Non-GAAP Financial Measures

Net revenue changes in constant dollars and total comparable sales in
constant dollars are not United States generally accepted accounting
principle (“GAAP”) performance measures. We provide net revenue changes
in constant dollars and constant dollar total comparable sales because
we use these measures to understand the underlying growth rate of net
revenue excluding the impact of changes in foreign exchange rates, which
are not under management’s control. We believe that disclosing these
measures on a constant dollar basis is useful to investors because it
enables them to better understand the level of growth of our business.
The presentation of this financial information is not intended to be
considered in isolation or as a substitute for, or superior to, the
financial information prepared and presented in accordance with GAAP.

Forward-Looking Statements

This press release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934 that involve risks, uncertainties
and assumptions, such as statements regarding our future financial
condition or results of operations and our prospects and strategies for
future growth. In many cases, you can identify forward-looking
statements by terms such as “may,” “will,” “should,” “expects,” “plans,”
“anticipates,” “outlook,” “believes,” “intends,” “estimates,”
“predicts,” “potential” or the negative of these terms or other
comparable terminology. These forward-looking statements are based on
management’s current expectations but they involve a number of risks and
uncertainties. Actual results and the timing of events could differ
materially from those anticipated in the forward-looking statements as a
result of risks and uncertainties, which include, without limitation:
our ability to maintain the value and reputation of our brand, including
any negative publicity regarding our products or the production methods
of our suppliers or manufacturers; the acceptability of our products to
our guests, including receiving products that comply with our technical
specifications and quality standards; our reliance on and limited
control over third-party suppliers to provide fabrics for and to produce
our products; an economic downturn or economic uncertainty in our key
markets; our highly competitive market and increasing competition;
increasing product costs and decreasing selling prices; our ability to
anticipate consumer preferences and successfully develop and introduce
new, innovative and updated products; our ability to accurately forecast
customer demand for our products; our ability to safeguard against
security breaches with respect to our information technology systems;
any material disruption of our information systems; our ability to
manage our growth and the increased complexity of our business
effectively; the fluctuating costs of raw materials; our ability to
expand internationally in light of our limited operating experience and
limited brand recognition in new international markets; our ability to
deliver our products to the market and to meet customer expectations if
we have problems with our distribution system; imitation by our
competitors; our ability to protect our intellectual property rights;
our ability to cancel store leases if an existing or new store is not
profitable; increasing labor costs and other factors associated with the
production of our products in South and South East Asia; our ability to
successfully open new store locations in a timely manner; our ability to
comply with trade and other regulations; the continued service of our
senior management; seasonality; fluctuations in foreign currency
exchange rates; changes in tax laws and unanticipated tax liabilities;
the operations of many of our suppliers are subject to international and
other risks; our ability to source our merchandise profitably or at all;
our exposure to various types of litigation; actions of activist
stockholders; and other risks and uncertainties set out in filings made
from time to time with the United States Securities and Exchange
Commission and available at,
including, without limitation, our most recent reports on Form 10-K and
Form 10-Q. You are urged to consider these factors carefully in
evaluating the forward-looking statements contained herein and are
cautioned not to place undue reliance on such forward-looking
statements, which are qualified in their entirety by these cautionary
statements. The forward-looking statements made herein speak only as of
the date of this press release and we undertake no obligation to
publicly update such forward-looking statements to reflect subsequent
events or circumstances, except as may be required by law.


ICR, Inc.
Joseph Teklits/Caitlin Morahan
Alecia Pulman