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.