Lululemon Forecast Trails Estimates After Strong Holiday SalesLindsey Rupp
Lululemon Athletica Inc. projected full-year profit that trailed analysts’ estimates, raising concern that the yogawear retailer won’t be able to maintain sales growth after a strong holiday season.
Full-year profit will be $1.85 to $1.90 a share, the Vancouver-based company said in a statement Thursday. Analysts had projected $2.07, the average of estimates compiled by Bloomberg.
Oversized sweaters and puffy coats helped give Lululemon upbeat results during the holidays. But Wall Street was expecting more from the company, which is overhauling its business, expanding internationally and selling more men’s apparel.
“In 2015, we expect to substantially complete this foundational work and accelerate our investments in innovation,” Chief Executive Officer Laurent Potdevin said in the statement.
Lululemon shares fell 3.1 percent to $59.10 at 8:39 a.m. in New York Thursday. The stock has gained 9.3 percent this year through yesterday.
Net income in the quarter ended Feb. 1 rose to $110.9 million, or 78 cents a share, from $109.7 million, or 75 cents, a year earlier. Analysts projected 73 cents, the average of estimates compiled by Bloomberg.