lululemon athletica, Inc. (NASDAQ:LULU) is seeing a surge in shares pre-market today. The Yoga apparel and class operator raised its prior guidance. lulu said its comparable store sales are now expected to show percentage growth in the mid-30’s over the same period last year, above the previous guidance of growth in the mid to high teens.
lulu’s revised guidance is attributable primarily to strong sales volumes. Interestingly enough it also said that an additional benefit came from the impact on sales of a strengthening Canadian dollar against the U.S. dollar. On a constant dollar basis, the revised guidance translates into a mid-20’s percentage increase over 2006. Even though the increase in sales is expected to be partially offset by the currency impact on SG&A costs incurred in Canada, the Company expects to exceed its previous guidance of $0.05 to $0.06 EPS for the third quarter.
LULU shares are trading up over 9% at $45.00 in pre-market trading, still under the $48.58 highs since the company’s stellar IPO this morning.
- Initial Research Calls on LULU;
- Cramer thinks its the next hot apparel company;
- Its first earnings report.
Jon C. Ogg
October 16, 2007