Lululemon Falls After Post-Earnings Downward Dog
Bloomberg

Shares of athletic apparel maker Lululemon Athletica Inc. (LULU)  fell 3.1% on Friday, Dec. 7, after sliding as much as 10% after the company reported fiscal third-quarter earnings that beat analysts' expectations.

Shares of the Vancouver-based company immediately plunged after it released its fiscal third-quarter numbers on Thursday, but then clawed back to end the after-hours trading session with a 0.4% gain. The stock fell to $127.33 early Friday.

Lululemon posted third-quarter net income of $94.4 million, or 71 cents a share, up from $58.9 million, or 44 cents, a year ago. After adjustments for a lower tax rate and other factors, the company earned 75 cents a share, up from 56 cents a year earlier.

Analysts surveyed by FactSet had anticipated adjusted earnings of 69 cents a share on sales of $738 million.

Same-store sales - a bellwether of retailers' performance - rose 18%, above forecasts of 13.8%.

Despite a weaker-than-expected fourth-quarter outlook, Lululemon increased its revenue forecast for the fiscal year to a range of $3.24 billion to $3.25 billion, compared with a previous range of $3.19 billion to $3.24 billion.

Earnings, excluding a tax reform-related expense, are expected to fall between $3.65 and $3.68 a share for the fiscal year, also up from a prior range of $3.45 to $3.53 a share, the company said.

More from Earnings

Jim Cramer on Why McDonald's Is a Safe Haven in a Volatile Market

Jim Cramer on Why McDonald's Is a Safe Haven in a Volatile Market

CalAmp Shares Plunge on Revised Guidance, Analyst Downgrades

CalAmp Shares Plunge on Revised Guidance, Analyst Downgrades

DSW Leaps as Shoe Retailer Posts Strong Earnings, Guidance

DSW Leaps as Shoe Retailer Posts Strong Earnings, Guidance

Big Lots Stock Suffers 23% Post-Earnings Drop

Big Lots Stock Suffers 23% Post-Earnings Drop

Trading Strategies: Understanding the Markets Going Into 2019

Trading Strategies: Understanding the Markets Going Into 2019