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BRIEF-Lululemon expects margins to grow next year

Published 2015-09-10, 10:15 a/m
© Reuters.  BRIEF-Lululemon expects margins to grow next year
LULU
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Sept 10 (Reuters) - Lululemon LULU.O :
* CFO says opened 20 net new company operated stores in Q2
* CFO says company operated stores represented 75% of total
revenue or $339.8 million
* CFO says weaker Canadian and Australian dollar impacted
revenue by 4.5 percent
* CFO says ended the second quarter with 336 total stores
versus 270 a year ago
* Says revenue from their direct-to-consumer channel was
$82.2 million or 18.2% of total revenue versus 63.5 million or
16.2% a year ago
* Says supply chain now normalized or running on time or
early
* CFO says qtrly gross margin will be sequentially better in
Q4
* CFO says gross margin will benefit from improved air
freight levels coupled with stabilized merchandise margins
* CFO says expect Q2 momentum to carry into Q3 and now
expect Q3 revenue to be in the range of $477 million to $482
million
* Says inventory levels now higher than it likes, but on
track to work down excess levels and rebalance in H2
* Term gross margin pressure being faced is not a result of
higher markdowns or quality issues
* CEO says will see the margin expansion that co is
committed to, but will only see it in 2016 and beyond
* CFO says will see modest product margin recovery in Q4

Source text for Eikon: ID:
Further company coverage: LULU.O

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