Lululemon Shares Fall on Q4 Guidance

by Christopher Freeburn | January 15, 2013 10:46 am

LululemonPromo Lululemon Shares Fall on Q4 Guidance[1]Investors hammered shares of Lululemon Athletica (NASDAQ:LULU[2]) after it announced fourth-quarter revenue estimates that were lower than Wall Street expected[3].

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[4] 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.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/06/LululemonPromo.jpg
  2. LULU: http://studio-5.financialcontent.com/investplace/quote?Symbol=LULU
  3. were lower than Wall Street expected: http://www.bloomberg.com/news/2013-01-14/lululemon-drops-as-quarterly-outlook-trails-analysts-estimates.html
  4. fell sharply in early December: http://investorplace.com/2011/12/lululemon-athletica-yet-another-momentum-stock-tailspin/

Source URL: http://investorplace.com/2013/01/lululemon-shares-fall-on-q4-guidance/
Short URL: http://invstplc.com/1ftH58a