This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Lululemon's Downward Dog on Lower Outlook

NEW YORK (TheStreet) - Lululemon Athletica (LULU) shares fell 7% in pre-market trading as the yoga apparel maker tempered investor expectations for the rest of the year, despite a better-than-expected second quarter.

The Vancouver-based company said net income slipped to $56.5 million compared to a year earlier. Lululemon's diluted earnings of 39 cents a share stayed the same as the second quarter of 2012.

Net revenue for the quarter jumped 22% to $344.5 million, while comparable stores sales increased by 8% on a constant dollar basis, the company said.

Analysts, on average, expected the company to earn 35 cents a share on $343 million, according to Thomson Reuters.

Shares were falling 7% to $64.20 before the markets opened.

Also see: Vera Bradley Tanks on Cautious Outlook

Lululemon tempered Wall Street expectations for the remainder of the year. The retailer expects third-quarter revenue to be in a range of $370 million to $375 million, on assumptions of "mid-single digits" comparable store sales, compared to expectations of $380 million. Lululemon expects earnings of 39 cents to 41 cents a share in the quarter, compared to expectations of 44 cents a share.

For the full year, net revenue is expected to be in a range of $1.63 billion to $1.64 billion and earnings between $1.94 to $1.97 a share. Wall Street was expecting full-year revenue of $1.67 billion and earnings of $1.99 a share.

Earlier this year Lululemon announced that CEO Christine Day is stepping down once a successor is found. Today's earnings release did not elaborate on any details of the search process, but investors will surely be listening in on the company's conference call this morning to hear any news.

This year "continues to be the most important and most productive year in lululemon's history," Day said in the earnings statement. "We have not only worked our way back from the black luon setback, but have also added very talented people in important functions and have taken major steps forward on a number of key fronts including the expansion of our international and men's businesses and many logistical initiatives."

"We are well on our way to finishing 2013 as a much stronger company than when the year began. I am confident that the leadership currently in place coupled with a new CEO will have tremendous success leveraging the platform for growth," Day said.

-- Written by Laurie Kulikowski in New York.

To contact Laurie Kulikowski, send an email to: Laurie.Kulikowski@thestreet.com.

>To submit a news tip, email: tips@thestreet.com.



Follow TheStreet on Twitter and become a fan on Facebook.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,563.30 -317.06 -1.88%
S&P 500 1,930.67 -39.40 -2.00%
NASDAQ 4,369.7730 -93.1290 -2.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs