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lululemon athletica inc. Updates Guidance for Fourth Quarter of Fiscal 2013 Ahead of Presentation at ICR XChange



  lululemon athletica inc. Updates Guidance for Fourth Quarter of Fiscal 2013
  Ahead of Presentation at ICR XChange

ICR XChange 2014

Business Wire

VANCOUVER, British Columbia -- January 13, 2014

lululemon athletica inc. [NASDAQ:LULU] today announced that the Company is
updating its net revenue and earnings guidance for the fourth quarter of
fiscal 2013 ending February 2, 2014.

For the fourth quarter, the Company now anticipates that net revenue will be
in the range of $513 million to $518 million based on comparable-store sales
in the negative low-to-mid single digits on a constant-dollar basis. This
compares to the Company's previous guidance of net revenue in the range of
$535 million to $540 million for the fourth quarter based on flat
comparable-store sales on a constant-dollar basis. The Company also now
expects diluted earnings per share will be in the range of $0.71 to $0.73 for
the quarter. The previous EPS guidance for the fourth quarter was a range of
$0.78 to $0.80. EPS guidance continues to assume 146.0 million diluted
weighted-average shares outstanding and a 30.0% tax rate.

John Currie, lululemon’s CFO stated: "We were on track to deliver on our sales
and earnings guidance through the month of December; however, since the
beginning of January, we have seen traffic and sales trends decelerate
meaningfully. Based on this recent performance and assuming these trends
continue through the remainder of January, we are reducing our outlook for the
fourth quarter." Mr. Currie continued: "As we end 2013, we are starting to see
the results of the significant investments we made throughout this past year
to strengthen and enhance our back-of-house product operations structure.
While we realize that it will require continued investment and time to get to
best-in-class status, with our new leadership in place we are very focused on
building on this stronger foundation to execute our long-term growth
strategies."

Management will be meeting with analysts and investors and presenting at the
ICR XChange Conference in Orlando, Florida this week. See the Company's
separate press release for webcast information.

About lululemon athletica inc.

lululemon athletica inc. (NASDAQ:LULU) is a yoga-inspired athletic apparel
company that creates components for people to live long, healthy and fun
lives. By producing products that help keep people active and stress free,
lululemon believes that the world will be a better place. Setting the bar in
technical fabrics and functional designs, lululemon works with yogis and
athletes in local communities for continuous research and product
feedback. For more information, visit www.lululemon.com.

Non-GAAP Financial Measure

Constant-dollar net revenue changes, which exclude the impact of changes in
foreign exchange rates, is not a United States Generally Accepted Accounting
Principle (“GAAP”) performance measure. We provide constant-dollar net revenue
changes because we use the measure to understand the underlying growth rate of
revenue excluding the impact on a quarter-by-quarter basis of changes in
foreign exchange rates, which are not under management’s direct control. We
believe that disclosing net revenue changes on a constant-dollar basis is
useful to investors because it enables them to better understand the level of
growth of our business.

Forward-Looking Statements:

This press release contains “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 that involve risks, uncertainties and assumptions, such
as statements regarding the effect of shipments of products that fail to
comply with our technical specifications or that fail to conform to our
quality control standards, the duration of any shortage of products available
for sale in our stores or for delivery to guests or our ability to obtain
replacement products in a timely manner, any expected loss of net revenue
resulting from the inability to sell those products and related increased
administrative and shipping costs, and our future financial condition or
results of operations, and our prospects and strategies for future growth. In
many cases, you can identify forward-looking statements by terms such as
“may,” “will,” “should,” “expects,” “plans,” “anticipates,” “outlook,”
“believes,” “intends,” “estimates,” “predicts,” “potential” or the negative of
these terms or other comparable terminology. These forward-looking statements
are based on management’s current expectations but they involve a number of
risks and uncertainties. Actual results and the timing of events could differ
materially from those anticipated in the forward-looking statements as a
result of risks and uncertainties, which include, without limitation: our
reliance on and limited control over third-party suppliers to provide fabrics
for and to produce our products; negative publicity regarding any of our
products or our the production methods of any of our suppliers or
manufacturers; the effects of shipments of products that fail to comply with
our technical specifications or that fail to conform to our quality standards;
the effects of a shortage of products available for sale in our stores or for
delivery to guests; an economic downturn or economic uncertainty in our key
markets; increasing product costs and decreasing selling prices; our inability
to anticipate consumer preferences and successfully develop and introduce new,
innovative and updated products; our inability to accurately forecast customer
demand for our products; our inability to manage our growth and the increased
complexity of our business effectively; the fluctuating costs of raw
materials; our highly competitive market and increasing competition; an
unforeseen disruption of our information systems; our inability to deliver our
products to the market and to meet customer expectations due to problems with
our distribution system; our inability to cancel store leases if an existing
or new store is not profitable; increasing labor costs and other factors
associated with the production of our products in China; our inability to
successfully open new store locations in a timely manner; our failure to
maintain the value and reputation of our brand; our failure to comply with
laws related to our human resources policies or other procedures; our failure
to comply with trade and other regulations; our transition to a new CEO and
the possibility of losing the services of other key personnel; our competitors
manufacturing and selling products based on our fabrics and manufacturing
technology at lower prices than we can; our failure to protect our
intellectual property rights; and other risks and uncertainties set out in
filings made from time to time with the United States Securities and Exchange
Commission and available at www.sec.gov, including, without limitation, our
most recent reports on Form 10-K and Form 10-Q. You are urged to consider
these factors carefully in evaluating the forward-looking statements contained
herein and are cautioned not to place undue reliance on such forward-looking
statements, which are qualified in their entirety by these cautionary
statements. The forward-looking statements made herein speak only as of the
date of this press release and we undertake no obligation to publicly update
such forward-looking statements to reflect subsequent events or circumstances,
except as may be required by law.

Contact:

ICR, Inc.
Investors:
Joseph Teklits/Jean Fontana, 203-682-8200
or
Media:
Alecia Pulman, 203-682-8224
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