Retail

Lululemon, The Recession, and Yoga (LULU)

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

Get Ready To Retire (Sponsored)

Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Get started right here.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.