by Christopher Freeburn | January 15, 2013 10:46 am
Investors hammered shares of Lululemon Athletica (NASDAQ:LULU) after it announced fourth-quarter revenue estimates that were lower than Wall Street expected.
Lululemon shares dropped more than 6% in Tuesday morning trading.
The yoga apparel retailer said it expects fourth-quarter revenue to be near the top of its previously issued estimate of between $475 million and $480 million. That fell short of the $489 million in revenue that analysts had hoped to see, Bloomberg noted.
The company also predicted a fourth-quarter profit of 74 cents per share, which exceeded its earlier forecast by a penny and met Wall Street expectations.
Lululemon shares had surged 63% last year. The fourth quarter, which includes the holiday shopping season, produces the retailer’s best revenues.
Shares of Lululemon fell sharply in early December after it posted third-quarter revenue that rose 31% over the same period in 2011 and earnings that doubled from the previous year, but still fell short of the inflated estimates of Wall Street analysts.
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