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Lululemon Shares Decline as Outlook Falls Short

Thursday, 24 Jan 2013 11:27 PM

 

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Shares of Lululemon Athletica Inc. slid in late trading Monday after the Canadian yoga-wear retailer forecast fourth-quarter sales that trailed analysts’ estimates.

In aftermarket trading, the shares were down 6.1 percent at $67.89. The Vancouver-based company, which gained 63 percent in 2012, had closed at $72.30, up 2.1 percent.

Revenue for the fiscal fourth-quarter ended Feb. 3 will be at the “high end” of its original forecast of $475 million to $480 million, Lululemon said in a statement Monday. Analysts had projected $489 million, the average of 22 estimates compiled by Bloomberg. The period, which includes holiday sales, is the company’s biggest quarter.

The company made the announcement ahead of a Jan. 16 presentation at a conference held by ICR Inc. in Miami. Lululemon has announced its fourth-quarter outlook ahead of the conference for the past two years, Erika Maschmeyer, an analyst at Robert W. Baird & Co. in Chicago, wrote in a Dec. 20 note.

Profit for the period will be 74 cents a share, up from a previous forecast of a maximum of 73 cents. That matched the 74- cent average of analysts’ estimates.

© Copyright 2013 Bloomberg News. All rights reserved.

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