Lululemon stock slides after earnings
Lululemon Athletica Inc. LULU, -1.63% shares dropped in late trading Thursday, after the athletic-wear company reported earnings that beat expectations. Lululemon reported earnings of 71 cents a share on revenue of $747.7 million, up from $619 million a year ago. After adjustments for taxes and other effects, the company claimed earnings of 75 cents a share, up from 56 cents a share in the year-ago quarter. Analysts on average expected adjusted earnings of 69 cents a share on sales of $738 million, according to FactSet. The company also increased its guidance for full-year profits, and met analysts’ expectations for its fourth-quarter forecast. The stock immediately plunged about 10% after the numbers were released, but then clawed back, trading about 5% lower. Shares closed with a 1.6% decline at $131.44, but have gained 67.3% so far this year, as the S&P 500 index SPX, -0.15% has gained 1%.
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