NEW YORK (TheStreet) -- Lululemon (LULU) stock is plunging Thursday after management guided for below-consensus earnings in its second quarter and full year. By early afternoon, shares had tanked 16.2% to $37.33.
In its second quarter ending July, management expects revenue between $375 million and $380 million, comparable sales down in the low- to mid-single digits, and earnings of 28 cents to 30 cents a share. Analysts surveyed by Thomson Reuters expected earnings of 36 cents a share and average sales of $387.2 million.
For its January-ending fiscal year, the company guides for revenue of $1.77 billion to $1.8 billion and earnings of $1.71 to $1.76 a share (including one-time tax adjustments). Analysts had forecast revenue of $1.803 billion and earnings of $1.89 a share.
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TheStreet Ratings team rates LULULEMON ATHLETICA INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate LULULEMON ATHLETICA INC (LULU) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."
- You can view the full analysis from the report here: LULU Ratings Report