This Day On The Street
Continue to site
ADVERTISEMENT
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

Lululemon's Downward Dog on Lower Outlook

NEW YORK ( TheStreet) - Lululemon Athletica (LULU - Get Report) 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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
LULU $61.12 1.40%
AAPL $132.04 1.87%
FB $80.55 1.53%
GOOG $539.79 1.40%
TSLA $247.43 -0.01%

Markets

DOW 18,162.99 +121.45 0.67%
S&P 500 2,123.48 +19.28 0.92%
NASDAQ 5,106.5930 +73.8420 1.47%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs