NEW YORK (TheStreet) -- Lululemon (LULU) management agrees on one thing: the company shares will rise from current levels. But its bickering board doesn't have a coherent plan on how that will happen, say investors. And that's making folks on StockTwits.com uncomfortable with holding the stock.
The athletic-wear company announced Thursday that it would repurchase up to $450 million of its common shares in the next two years. The bullish action, however, couldn't counter reduced guidance.
Management lowered full-year expectations. It now expects net revenue in the range of $1.77 billion and $1.8 billion. Earnings-per-share, not including a one-time tax adjustment, should come in between $1.71 and $1.76. Analysts had expected EPS of $1.89 on $1.8 billion in revenues, according to stats on Yahoo! Finance.
The stock fell nearly 16% by 1 p.m. ET. Sentiment dropped 20%, according to StockTwits' analytics. About 41% of StockTwits' users believe shares will continue to decline.
Any pundit using "Downward Dog" when talking $LULU should be forced to be in the pose as they say it? Greg Harmon (@harmongreg) Jun. 12 at 12:34 PM
Analysts at Stifel Nicolaus and William Blair downgraded the stock Wednesday from a buy to hold and market perform, respectively. Other analysts took down their price targets.