Lululemon shares slip on profit forecast
Lululemon 3-month TSX chart
Shares of Lululemon Athletica slipped Tuesday after the yoga clothing retailer shaved its profit outlook for this year.
On the Toronto Stock Exchange, Lululemon closed down $2.04, or more than six per cent, at $30.60. The stock earlier hit an intraday low of $29.20.
After the close of trading on Monday, the Vancouver-based company trimmed its full-year profit forecast to a range of between 68 and 71 cents a share. The previous range was 70 to 72 cents a share. The company said new hirings and "strategic initiatives" are the reason for the lower profit outlook.
The news wasn't all bad from the company. It said it expects revenue for the year will be between $380 million US and $385 million US, roughly $10 million higher than earlier forecast.
For the first quarter, Lululemon posted a profit of $8.5 million US, or 12 cents a share, roughly double what it made a year ago. The company's revenue grew by about 75 per cent to $78.2 million US.
“We are pleased with the continued momentum of our business through the first quarter despite the overall consumer environment," said Robert Meers, Lululemon’s CEO.
Meers is due to step down on June 30 and be replaced as CEO by former Starbucks executive Christine Day, who joined Lululemon in January as executive vice-president of retail operations.
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