Sep 13, 2013
Lululemon shares slide as outlook trimmed
Sep 13, 2013
TORONTO, Canada - Retailer Lululemon Athletica Inc, recovering from a setback after its see-through yoga pants were recalled earlier this year, trimmed its outlook on Thursday.
The yogawear company's shares fell some 8 percent to $63.50 in premarket trading.
For the 2013 full fiscal year, the company expects net revenue in the range of $1.625 billion to $1.635 billion, down from $1.645 billion to $1.665 billion previously forecast.
The company trimmed its forecast for diluted earnings per shares to $1.94 to $1.97 for the full year, down from $1.96 to $2.01.
Vancouver, British Columbia-based Lululemon said third- quarter net revenue was expected to be $370 million to $375 million.
Lululemon made form-fitting yoga pants a wardrobe staple, effectively creating the market for high-end, fashionable women's athletic wear, and it built a reputation for clothing that could withstand years of use and hundreds of washes.
That reputation was tarnished earlier this year when it issued a major recall of its signature black Luon yoga pants due to the excessively sheer fabric.
The Canadian company said net income fell to $56.5 million, or 39 cents per share in the second quarter from $57.2 million, or 39 cents per share, a year earlier.
Net revenue was $344.5 million.
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