Lululemon Athletica Earnings Call Nuggets: Product Shipment Outlook and Store Ambassadors
Product Shipment Outlook
Erika Maschmeyer – Robert W. Baird & Co., Inc.: Just to go back to the recall issue, if you identify the issue today, when would you expect to receive shipment in your stores, and then could you talk about the revenue impact that you’re assuming in your guidance in Q2 and also any thoughts on diversifying your vendor base?
John E. Currie – CFO: In terms of the revenue impact in Q2, the amount that I guided to for the balance of the year, the bulk of the impact of that is in Q2, I’d say roughly 85%, 90% of that.
Christine Day – CEO: Erika, on the other one, we still have to find out exactly where the process broke down and what I want to say is that, it’s a multi-step process with multiple venders involved and we don’t want to call attention to anyone particular vendor because it would be unfair until we completed the diagnostics that – or it’s more complicated than it being just one individual workgroup. Regarding identify or diversifying the supplier base, we have actually moved in that direction and we should have two additional sources up and ready for manufacturing our key fabrics by the fall.
Erika Maschmeyer – Robert W. Baird & Co., Inc.: So do you think that by the end of Q2 you could have potentially shipments of fixed product coming under the stores?