Lululemon Athletica (LULU) 8-K Results of Operations and Financial Condition

Exhibit 99.1

LULULEMON ATHLETICA INC. ANNOUNCES SECOND QUARTER FISCAL 2007 RESULTS
Second Quarter Net Revenue Increases 80% to $58.7 million
Operating Income Increases 202% to $9.8 million

Vancouver, Canada — September 10, 2007 — lululemon athletica inc. [NASDAQ: LULU; TSX: LLL] today announced financial results for the three and six months ended July 31, 2007.

For the three months ended July 31, 2007:

• Net revenue increased 80% to $58.7 million compared to $32.5 million for the second quarter of fiscal 2006. Net revenue from corporate-owned stores increased 98% to $53.1 million compared to $26.8 million for the second quarter of fiscal 2006, with comparable store sales growth of 30%.

• Gross profit as a percentage of net revenue increased 430 basis points to approximately 53% of net revenue from 49% of net revenue in the second quarter of fiscal 2006.

• Income from operations increased 202% to $9.8 million, or 17% of revenues, compared to $3.2 million, or 10% of revenues, in the second quarter of fiscal 2006.

• Diluted earnings per share were $0.07 on net income of $5.1 million, compared to diluted earnings per share of $0.03 on net income of $1.9 million in the second quarter of fiscal 2006.

For the six months ended July 31, 2007:

• Net revenue increased 70% to $103.5 million compared to $60.7 million for the same period in fiscal 2006. Net revenue from corporate-owned stores increased 86% to $91.1 million compared to $49.0 million for the same period in fiscal 2006, with comparable store sales growth of 25%.

• Gross profit as a percentage of net revenue increased 210 basis points to approximately 52% of revenues from 50% of net revenue in the first six months of fiscal 2006.

• Income from operations increased 78% to $16.6 million, or 16% of revenues, compared to $9.4 million, or 15% of revenues, in the first six months of fiscal 2006.

• Diluted earnings per share were $0.12 on net income of $8.7 million, compared to diluted earnings per share of $0.07 on net income of $5.1 million, for the same period in fiscal 2006.

Robert Meers, lululemon’s CEO stated: “We are pleased to report strong results in our initial quarter as a public company. Our team has built on the success of our unique winning formula — vertically retailing technical apparel for men and women — in a rapidly growing global market for healthy and active living. All of our managers, educators, brand ambassadors and head office employees continue to pave the way for the company’s success. ”

On August 2, 2007, the company completed an initial public offering of 20,930,000 shares of common stock at a price of $18.00 per share, of which 2,290,909 shares were sold by the company and 18,639,091 shares were sold by certain selling stockholders. Upon completion of the offering, the company and the selling stockholders received net proceeds of approximately $31.8 million and $312.0 million, respectively. The company intends to use the net proceeds from the offering, together with cash flow from operations, to fund new store openings and working capital, and for other general corporate purposes, which may include general and administrative expenses and potential acquisitions of franchises.

Mr. Meers continued, “We are very pleased with the successful completion of our initial public offering, and looking ahead, we are excited about the prospects for our unique brand and retailing model. Our plan is to capitalize on our expansion opportunities, and we are committed to generating returns for our stockholders.”

Guidance
For fiscal 2007, lululemon plans to open 25 new stores in North America, including the 8 new stores opened in the first two quarters. The Company is on plan to open the remaining 17 stores in the second half of fiscal 2007 and continues to expect 30 to 35 new store openings in fiscal 2008.

Based on results in the first half, the Company expects diluted EPS of $0.30 to $0.33 in fiscal year 2007 including $0.05 to $0.06 in our third quarter. We also expect comparable store sales in the mid to high-teen range for the full year. We anticipate diluted weighted average shares outstanding of approximately 70 million for 2007. The Company’s long-term annual financial targets include comparable store sales growth in the high-single digit range, net revenue growth of approximately 25% and diluted EPS growth in excess of 25%.

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Conference Call Information
A conference call to discuss second quarter results is scheduled for today, September 10, 2007, at 4:30 PM Eastern Time. Investors interested in participating in the call are invited to dial (877) 502-9272 approximately ten minutes prior to the start of the call. Analysts participating in the call are invited to dial (877) 502-9276. The conference call will also be webcast live atwww.lululemon.com.

About lululemon athletica inc.
lululemon athletica (NASDAQ:LULU; TSX:LLL) is a yoga-inspired athletic apparel company that creates components for people to live longer, healthier and more fun lives. By producing products that 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, visitwww.lululemon.com.

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 our future financial condition or results of operations, our prospects and strategies for future growth, the development and introduction of new products, and the implementation of our marketing and branding strategies. In many cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “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: the possibility that we may not be able to manage operations at our current size or manage growth effectively; the possibility that we may not be able to locate suitable locations to open new stores or attract customers to our stores; the possibility that we may not be able to successfully expand in the United States and other new markets; the possibility that we may not be able to finance our growth and maintain sufficient levels of cash flow; increased competition causing us to reduce the prices of our products or to increase significantly our marketing efforts in order to avoid losing market share; the possibility that we may not be able to effectively market and maintain a positive brand image; the possibility that we may not be able to maintain recent levels of comparable store sales or average sales per square foot; the possibility that we may not be able to continually innovate and provide our consumers with improved products; and the possibility that our suppliers or manufacturers may not produce or deliver our products in a timely or cost-effective manner; and other risk factors detailed in our filings with the Securities and Exchange Commission (“the SEC”), including Risk Factors contained in our final prospectus relating to our initial public offering filed included in our Registration Statement on Form S-1 (file no. 333-142477) filed with the Securities and Exchange Commission and available at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

Company Contact:
John Currie
Chief Financial Officer
lululemon athletica inc.
604-732-6124

Investor Contact:
Joseph Teklits/Jean Fontana
ICR, Inc
203-682-8200

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Exhibit (1)

lululemon athletica inc.

Consolidated Statements of Operations (unaudited)
Expressed in thousands of dollars except per share amounts

	Three Months			Three Months			Six Months			Six Months
	Ended			Ended			Ended			Ended
	July 31, 2007			July 31, 2006			July 31, 2007			July 31, 2006
Net revenue	$	58,681		$	32,517		$	103,470		$	60,701
Costs of goods sold (including stock based compensation of $193, $70, $2,487 and $1,543)		27,434			16,614			49,412			30,278
Gross Profit		31,247			15,903			54,058			30,423
As a percent of revenues		53.2	%		48.9	%		52.2	%		50.1	%
Selling, general and administrative expenses (including stock based compensation of $1,368, $720, $2,606 and $982)		21,477			12,667			37,440			21,073
As a percent of revenues		36.6	%		39.0	%		36.2	%		34.7	%
Income from operations		9,770			3,236			16,618			9,350
As a percent of revenues		16.6	%		10.0	%		16.1	%		15.4	%
Other expense (income), net		(70	)		(22	)		(177	)		(44	)
Income before income taxes		9,840			3,258			16,795			9,394
Provision for income taxes		4,798			1,318			8,247			4,273
Non-controlling interest		(80	)		—			(116	)		—
Net income	$	5,122		$	1,940		$	8,664		$	5,121
Earnings per share:
Basic	$	0.08		$	0.03		$	0.13		$	0.07
Diluted	$	0.07		$	0.03		$	0.12		$	0.07
Weighted average outstanding:
Basic		65,225,819			65,225,819			65,225,819			65,225,819
Diluted		68,891,237			68,881,241			68,878,832			66,868,836

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Exhibit (2)

lululemon athletica inc.

Condensed Consolidated Balance Sheets
Expressed in thousands of dollars

	July 31, 2007		January 31, 2007
	(unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	9,727	$	16,029
Inventories		23,848		26,628
Other current assets		4,704		5,836
Total current assets		38,279		48,493
Property and equipment, net		27,215		17,737
Intangible assets, net		7,205		2,140
Other assets		10,799		3,923
Total assets	$	83,498	$	72,293
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	4,928	$	4,933
Other current liabilities		14,837		17,173
Income taxes payable		5,370		9,178
Total current liabilities		25,135		31,284
Other liabilities		5,897		3,630
Stockholders’ equity		52,466		37,379
Total liabilities and stockholders’ equity	$	83,498	$	72,293

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