NEW YORK (TheStreet) -- Lululemon (LULU) stock plummeted over Thursday's session, weighed on by the company's weaker-than-expected guidance. By market close, shares were down 15.9% to $37.25.
For its second quarter ending July, the athletic apparel company guides for revenue of $375 million to $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.
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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."