400 Berwyn Park
899 Cassatt Road
Berwyn, PA 19312-1183
610.640.7800
Fax 610.640.7835
Robert D. Smith
direct dial: 610.640.7826
direct fax: 866.235.7809
smithrd@pepperlaw.com
direct dial: 610.640.7826
direct fax: 866.235.7809
smithrd@pepperlaw.com
July 10, 2007
VIA EDGAR AND FACSIMILE
Securities and Exchange Commission
100 F. Street, N.E.
Washington, DC 20549
100 F. Street, N.E.
Washington, DC 20549
| Attention: | Peggy Kim, Esq., Senior Staff Attorney Scott Anderegg, Esq., Staff Attorney Donna DiSilvio, Senior Staff Accountant Scott Stringer, Accountant |
| Re: | lululemon athletica inc. (f/k/a Lululemon Corp.) Verbal Comments to Amendment No. 4 to Registration Statement on Form S-1 Filed July 9, 2007 Commission File No. 333-142477 |
Ladies and Gentlemen:
On behalf of lululemon athletica inc. (f/k/a Lululemon Corp.) (the “Company”), in connection with the Company’s Registration Statement No. 333-142477 on Form S-1 (the “Registration Statement”) for the proposed initial public offering of its common stock, we respectfully submit the following supplemental information in response to verbal comments by the staff (the “Staff”) of the Securities and Exchange Commission (the “Commission”) made during a conference call on July 9, 2007 discussing the Company’s response to comment 4 in the Staff’s comment letter dated July 5, 2007. Page references contained in this letter are to the prospectus contained in Amendment No. 4 to the Registration Statement, which was filed on July 9, 2007.
The Company supplementally advises the Staff that the following table provides information on a post-split basis for all stock options granted during the period beginning one-year preceding the Company’s balance sheet as of April 30, 2007 through the date hereof:
Securities and Exchange Commission
July 10, 2007
Page 2
| LAI | Lulu US | Total | LAI | Lulu US | Total | LAI | Lulu US | Total | ||||||||||||||||||||||||||||||||||||
| Date of | # of Options | Exercise | Exercise | Exercise | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | ||||||||||||||||||||||||||||||||||
| Grant | Granted | Price | Price | Price | Share Price | Share Price | Share Price | Option Price | Option Price | Option Price | ||||||||||||||||||||||||||||||||||
| Options with performance and/or market conditions | ||||||||||||||||||||||||||||||||||||||||||||
| 7/3/2006 | 1,114,776 | $ | 0.50 | $ | 0.09 | $ | 0.58 | $ | 1.05 | $ | 0.18 | $ | 1.23 | $ | 0.78 | $ | 0.13 | $ | 0.91 | |||||||||||||||||||||||||
| Options with service conditions | ||||||||||||||||||||||||||||||||||||||||||||
| 7/3/2006 | 1,784,117 | $ | 0.50 | $ | 0.09 | $ | 0.58 | $ | 1.05 | $ | 0.18 | $ | 1.23 | $ | 0.78 | $ | 0.13 | $ | 0.91 | |||||||||||||||||||||||||
| 12/6/2006 | 5,954 | $ | 0.50 | $ | 0.09 | $ | 0.58 | $ | 8.03 | $ | 0.47 | $ | 8.50 | $ | 7.67 | $ | 0.41 | $ | 8.09 | |||||||||||||||||||||||||
| 12/27/2006 | 1,308,880 | $ | 0.50 | $ | 0.09 | $ | 0.58 | $ | 8.03 | $ | 0.47 | $ | 8.50 | $ | 7.67 | $ | 0.41 | $ | 8.09 | |||||||||||||||||||||||||
| 1/3/2007 | 357,299 | $ | 0.50 | $ | 0.09 | $ | 0.58 | $ | 8.03 | $ | 0.47 | $ | 8.50 | $ | 7.67 | $ | 0.41 | $ | 8.09 | |||||||||||||||||||||||||
| $ | 4.11 | $ | 0.27 | $ | 4.38 | |||||||||||||||||||||||||||||||||||||||
On a post-split basis, the weighted-average grant date fair value of the options with service conditions granted by LAI and Lulu US was $4.11 and $0.27.
The Company further advises the Staff that the following table provides information on a pre-split basis for all stock options granted during the period beginning one-year preceding the Company’s balance sheet as of April 30, 2007 through the date hereof:
| LAI | Lulu US | Total | LAI | Lulu US | Total | LAI | Lulu US | Total | ||||||||||||||||||||||||||||||||||||
| Date of | # of Options | Exercise | Exercise | Exercise | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | ||||||||||||||||||||||||||||||||||
| Grant | Granted | Price | Price | Price | Share Price | Share Price | Share Price | Option Price | Option Price | Option Price | ||||||||||||||||||||||||||||||||||
| Options with performance and/or market conditions | ||||||||||||||||||||||||||||||||||||||||||||
| 7/3/2006 | 468,000 | $ | 1.18 | $ | 0.21 | $ | 1.39 | $ | 2.51 | $ | 0.42 | $ | 2.93 | $ | 1.85 | $ | 0.31 | $ | 2.16 | |||||||||||||||||||||||||
| Options with service conditions | ||||||||||||||||||||||||||||||||||||||||||||
| 7/3/2006 | 749,000 | $ | 1.18 | $ | 0.21 | $ | 1.39 | $ | 2.51 | $ | 0.42 | $ | 2.93 | $ | 1.85 | $ | 0.31 | $ | 2.16 | |||||||||||||||||||||||||
| 12/6/2006 | 2,500 | $ | 1.18 | $ | 0.21 | $ | 1.39 | $ | 19.13 | $ | 1.12 | $ | 20.25 | $ | 18.28 | $ | 0.99 | $ | 19.27 | |||||||||||||||||||||||||
| 12/27/2006 | 549,500 | $ | 1.18 | $ | 0.21 | $ | 1.39 | $ | 19.13 | $ | 1.12 | $ | 20.25 | $ | 18.28 | $ | 0.99 | $ | 19.27 | |||||||||||||||||||||||||
| 1/3/2007 | 150,000 | $ | 1.18 | $ | 0.21 | $ | 1.39 | $ | 19.13 | $ | 1.12 | $ | 20.25 | $ | 18.28 | $ | 0.99 | $ | 19.27 | |||||||||||||||||||||||||
| $ | 9.80 | $ | 0.64 | $ | 10.44 | |||||||||||||||||||||||||||||||||||||||
On a pre-split basis, the weighted-average grant date fair value of the options with service conditions granted by LAI and Lulu US was $9.80 and $0.64.
The Company supplementally advises the Staff that it will revise the disclosure on page F-28 of the prospectus in its next amendment to the Registration Statement as follows:
"The weighted-average grant date fair value of the options granted by LAI and Lulu US was $9.80 and $0.64, respectively."
The previous disclosure of weighted-average grant date fair value of the options with service conditions granted by LAI and Lulu US was inadvertently presented in Canadian dollars.
We thank you for your prompt attention to this letter responding to the Staff’s verbal comments and look forward to hearing from you at your earliest convenience. Please direct any questions concerning this filing to the undersigned at 610.640.7826 or to Barry M. Abelson at 215.981.4282.
| Very truly yours, | ||||
| /s/ Robert D. Smith | ||||
| Robert D. Smith |
| cc: | Robert Meers John Currie Kevin Kennedy Tahir Ayub Barry M. Abelson |