Lululemon expects boost from US tax reform
09/01/2018
It expects revenue in the range of $905 million to $915 million rather than the $870 million to $885 million originally forecast for the three months to the end of January.
“We are assessing the impact that the tax reform will have, but expect to recognise a significant income tax expense in the fourth quarter of fiscal 2017 related to the one-time deemed repatriation tax on accumulated foreign earnings. We believe that the impact of the tax reform will be favourable to the company's effective tax rate in fiscal 2018,” said the company in a statement.
The legislation contains $1.5 trillion in tax cuts and has been described by US President Donald Trump as "a big, beautiful tax cut".
CEO Laurent Potdevin added: "We are thrilled with our performance this holiday season that reflects an accelerating trend across all parts of our business, and we look forward to continued momentum in 2018 and beyond.”
Lululemon reported 14% rise in revenue to $2.3 billion for the 2016 fiscal year.
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