Lululemon Athletica Earnings Call Nuggets: Guidance Breakdown and Black Luon Outlook
Lululemon Athletica, Inc. (NASDAQ:LULU) recently reported its second quarter earnings and discussed the following topics in its earnings conference call.
Adrienne Tennant – Janney Capital Markets: My question is what is the actual, sort of, implied comp. You said that there was a tough start to the beginning of the third quarter. Should we assume this is right in line with that guidance of mid-single-digit and does that guidance imply an acceleration in the comp as the quarter goes on? Then just finally for the fourth quarter, what type of comp and margin is implicit in the annual guidance?
John E. Currie – CFO: Yeah, the Q3 guidance is based on a mid-single digit comp assumption and slight improvement, as I said, product flow is better as we head into the second half of this quarter. So a slight increase, but still within that mid-single digit range. For the fourth quarter, the implied guidance is high single-digits of comps.
Adrienne Tennant – Janney Capital Markets: And the margin, the gross margin?
John E. Currie – CFO: As I said, we’ve kind of alluded the low end of the mid-single digits reached 53%, 54% in that range.