Lululemon Athletica Inc. (NASDAQ: LULU) managed to beat earnings estimates this morning, but the guidance leaves little to be desired. The yoga-wear company reported profit of $0.13 per share and posted a 34% annual gain in revenues of $87 million. First Call had estimates of $0.12 for profit and $86.5 million in sales.
Lulu’s guidance for its Q4 period is now $0.15 to $0.17 EPS on revenueof $90 million to $95 million. First Call estimates were $0.26 EPS and$130.4 million. The mid-point of this range is indicative of more thana 10% year-over-year drop in revenues and in earnings.
Shares are down 8% at $9.60 in early pre-market indications, and its 52-week trading range is $6.96 to $50.60.
The good news is that the company is still profitable. The bad news is that Yoga is not recession-proof.
Jon C. Ogg
December 11, 2008
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.