- Lululemon's (LULU -7%) explanation of its PR issue indicates the Luon yoga pants issue dented the brand reputation a bit more than expected. The resignation of CEO Christine Day and ill-timed comments from the company's founder are also in the background.
- Flat comparable store sales growth is expected for Q4 despite a strong performance from the company's e-commerce business. Execs say 2/3 of the weak guidance is tied to slow traffic and 1/3 from product issues.
- Penetration for e-commerce increased to over 16% as new channels have been introduced.
- Gross margin rate is expected to slip to the mid-50s in Q4.
- With sales running behind schedule, promotions will have to be increased in some categories.
- SG&A expenses could be a drag as Lululemon enters new markets.
- Earnings call webcast, previous from the call
Heard during Lululemon's earnings call
Dec 12 2013, 09:34 ET