LULULEMON ATHLETICA INC (LULU) Incomes Report: Q2 2015 Conference Call Transcript
I would now likewant to introduce your host for this teleconference, Mr. Chris Tham. You may start.
Chris Tham (VP, Financial Planning, Analysis):.
Thank you and excellent early morning. Invite to Lululemon.
Prior to we get startedstart, Id like to take this opportunity to advise you that our statements today will certainly include forward-looking statements reflecting managements current forecast of particular aspects of the Companys future. These declarations are based on present information which we have examined, but which by its nature is vibrant and based on fast and even abrupt changes.
Real outcomes may differ materially from those included in or suggested by these positive declarations, due to threats and unpredictabilities associated with the Companys company. Factors that might cause these results to vary materially are set forth in the Companys filings with the SEC, including our yearly report on Form 10-K and our quarterly reports on Kind 10-Q.
Any positive declarations that we make on this call are based on presumptions since today and we undertake no obligation to update these statements as a result of new information or future events.
During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in todays profits press release. The press release and accompanying quarterly report on Kind 10-Q will certainly be readily available under the investor section of our website, at www.Lululemon.
Todays call is scheduled for one hour, so please limitation yourself to one question at a time to give others the chance to have their concerns attended to. And now, I would such as to turn the call over to Laurent.
Laurent Potdevin (CEO):.
Thank you, Chris, and great early morning, everybody. Today I will provide an overview of our 2nd quarter efficiency, along with provide you an update on our progress surrounding our essential strategic efforts plannedprepared for the remainder of the year. Stuart will certainly then stroll you through our financials and assistance in more detail.
As we enter the second half of the year, our group has actually made substantial progress to grow our global collective, by relentlessly innovating our product, and continuing to produce transformational experiences for our guests. We have lots of exciting turning points to cover today. The redesign of our womens trousers wall introduced recently, our fourth yearly SeaWheeze marathon was another extraordinary success right here in Vancouver, and we supported our brand-new market seeding by hosting in your area relevant conferences in our dynamic neighborhoods around the world, including in South Korea, Scotland and Germany.
On the people front, we just recently invited Miguel Almeida to lead our worldwide digital change. Miguel is an international citizen with a great background and, as an avid endurance runner, is an outstanding suitable for our culture.
Miguel is a passionate champ of utilizing the digital platform to deepen our connection with our guest through customized experiences, while likewise extending and magnifying brand resonance globally. I am thrilled to welcome Miguel to Lululemon.
From a business viewpoint, our energy continues to construct and our basics are strong. As you will certainly remember, we entered Q2 with a robust in-stock position and were positive that our guests would respond favorably to our product assortment.
This equated into a favorable effect on our leading line outcomes, with $453 million in net income for the quarter, up 16 % over the second quarter of 2014 and up 21 % in consistent currency. We provided an 11 % worldwide combined compensation, with strong performances both in our store and e-commerce channels.