Shares of Lululemon Athletica (NASDAQ: LULU) are being hit this morning on what seemed to be good earnings data on the surface. But when you dig down it seems that the growth is slowing . The maker of yoga and active lifestyle apparel posted earnings of $0.18 versus the First Call consensus estimate of $0.13. Its revenue rose 47% to $85.5 million versus estimates of $88.2 million, and this is part of the concern affecting shares today. Lululemon has also reaffirmed guidance for Fiscal-2009 of $0.68 to $0.71 on revenues of $380 to $385 million, while First Call has estimates at $0.71 and $404.9 million respectively.
Another issue that Lululemon is giving net revenue growth ofapproximately 25% and EPS growth in excess of 25%. If you interpolate thoseboth as 25% and overlay it to 2009 targets you derive numbers that arelower for its fiscal January-2010.
Shares closed at $18.00 yesterday and the 52-week trading range is$17.45 to $60.70. Unfortunately for its stock this looks like new52-week lows. As of 8:38 AM EST we have seen 27,000 shares trade handsin pre-market hours and the last print was at $16.50.
Jon C. Ogg
September 11, 2008
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