NEW YORK (TheStreet) -- Shares of Lululemon Athletica (LULU) - Get Lululemon Athletica Inc (LULU) Report were falling 8.32% to $70.28 in after-hours trading on Thursday after the company reported lighter-than-expected revenue for the 2016 fiscal second quarter and provided soft guidance for the current period.
After today's closing bell, the Canadian athletic apparel retailer said revenue increased 14% to $514.5 million year-over-year. Analysts were looking for revenue of $515.5 million for the second quarter.
Adjusted earnings of 38 cents per diluted share matched Wall Street's estimates.
"The second quarter demonstrated strong results as we delivered sales and EPS at the high-end of our guidance and saw an important inflection in our gross margin and earnings performance," CEO Laurent Potdevin said in a statement.
Comparable-store sales increased by 4%, or 5% on a constant currency basis, during the period.
For the third quarter, Lululemon sees earnings per diluted share between 42 cents and 44 cents on revenue of $535 million to $545 million. Analysts are projecting earnings of 44 cents per share on revenue of $542 million for the current period.
Full-year earnings per diluted share are expected to range from $2.11 to $2.19 on revenue of $2.325 billion to $2.35 billion. Wall Street is expecting earnings of $2.15 per share on revenue of $2.34 billion for fiscal 2016.
More than 3.92 million of the company's shares changed hands today vs. its average volume of 1.4 million shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and expanding profit margins.
The team believes its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: LULU