Lululemon shares fall after weak forecast

AP News
Posted: Dec 12, 2013 8:26 AM

NEW YORK (AP) — Shares of Lululemon fell in premarket trading after the upscale yoga clothing maker said it expects a key sales figure to be flat in the next quarter and trimmed its outlook for the year.

The weak forecast comes as Lululemon Athletica Inc. looks to bounce back from a series of embarrassing issues that have battered its image.

This spring, it pulled a style of its popular yoga pants from store shelves, blaming their sheerness on production problems.

The company's founder, Chip Wilson, also angered some customers when he said in a recent television interview that some women's bodies "just don't actually work" for Lululemon pants. He also said thighs rubbing over time will cause the pants to wear out too quickly.

Earlier this week, the Canadian company named a new CEO and said Wilson would step down as chairman.

For the quarter ended Nov. 3, the Canadian company said it earned $66.1 million, or 45 cents per share. That's up from $57.3 million, or 39 cents per share, a year ago.

Analysts had forecast 41 cents per share, according to FactSet.

Revenue rose 20 percent to $379.9 million, above the $374.6 million Wall Street expected.

But the company said it now expects revenue for the year to be between $1.605 billion and $1.61 billion. In August, it had said it expected between $1.625 billion and $1.635 billion.

Earnings are now expected to be between $1.94 and $1.96 per share; the company previously forecast $1.94 to $1.97 per share.

The stock was down more than 9 percent at $62.09 in premarket trading.