September 10, 2015 / 2:15 PM / in 2 years

BRIEF-Lululemon expects margins to grow next year

Sept 10 (Reuters) - Lululemon :

* CFO says opened 20 net new company operated stores in Q2

* CFO says company operated stores represented 75% of total revenue or $339.8 million

* CFO says weaker Canadian and Australian dollar impacted revenue by 4.5 percent

* CFO says ended the second quarter with 336 total stores versus 270 a year ago

* Says revenue from their direct-to-consumer channel was $82.2 million or 18.2% of total revenue versus 63.5 million or 16.2% a year ago

* Says supply chain now normalized or running on time or early

* CFO says qtrly gross margin will be sequentially better in Q4

* CFO says gross margin will benefit from improved air freight levels coupled with stabilized merchandise margins

* CFO says expect Q2 momentum to carry into Q3 and now expect Q3 revenue to be in the range of $477 million to $482 million

* Says inventory levels now higher than it likes, but on track to work down excess levels and rebalance in H2

* Term gross margin pressure being faced is not a result of higher markdowns or quality issues

* CEO says will see the margin expansion that co is committed to, but will only see it in 2016 and beyond

* CFO says will see modest product margin recovery in Q4 Source text for Eikon: Further company coverage: (Reporting by Solarina Ho and Euan Rocha; Editing by Bernadette Baum)

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