Lululemon shares sink on weak earnings, subdued outlook
Shares of Lululemon Athletica Inc. skidded in Thursday's extended session after the yoga apparel company posted earnings that fell short of Wall Street's target and issued a tepid outlook. Lululemon reported its second-quarter earnings rose to $53.6 million, 39 cents a share, from $47.7 million, or 34 cents a share, a year earlier. Excluding certain items, Lululemon would have earned 38 cents a share. Revenue grew 14% to $514.5 million and total comparable sales, which include both store and direct to consumer sales, increased 4%. Analysts surveyed by FactSet had forecast the yoga-wear maker to earn 38 cents a share on revenue of $516 million. In the third quarter, the company expects earnings per share of 42 cents to 44 cents and projected revenue of $535 million to $545 million which are on the lower end of the Street's projected ranges. Lululemon shares shed more than 7% after hours.
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