Retail

Downward Dog At Lululemon

lululemon
Lululemon Athletica Inc. (NASDAQ: LULU) is in the downward dog position this morning after earnings and guidance disappointed.  The yoga and exercise-themed retail and product maker said that its quarterly profits rose to $46.6 million, or $0.32 per share, versus $33.4 million and $0.23 per share a year earlier. Revenue was up 53% to $285.7 million.  We had consensus targets of $0.30 per share and $274.1 million.

Guidance is where the issues are… This quarter is expected to be $0.28 to $0.30 per share and revenue of $273 million to $278 million versus estimates of $0.33 per share and sales of $289.2 million.  2012 guidance is $1.55 to $1.60 per share with sales of $1.32 billion to $1.34 billion versus estimates of $1.63 EPS and $1.35 billion in sales.

The same-store sales rose 25% outside of currency changes as online sales rose by almost triple last year to 13.5% of total sales from only 7.4% of total sales a year ago.  Lululemon ended the quarter with 180 stores versus 142 stores a year ago.

We have already seen more than 1.8 million shares trade hands and the stock is down 7.7% at $64.65 against a prior 52-week range of $41.70 to $81.09.

JON C. OGG

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