Lululemon Athletica Inc. (NASDAQ: LULU) Wednesday posted fourth-quarter earnings that fell shot of analysts’ estimates, sending the stock down more than 20 percent.
The athletic wear maker said net income was $136.1 million, or 99 cents per share for the quarter ended Jan.29. Revenue was $789.9 million, up from $704.3 million a year earlier. Analysts polled by FactSet had expect earnings of $1.01 per share on revenue of $783 million
Laurent Potdevin, lululemon's CEO, stated: "Our third quarter results demonstrated strong execution across all areas of our business as we delivered continued topline momentum, outperformed in gross margin and inflected meaningfully in EPS. This success is a result of our team's ongoing effort and commitment to delivering on our long term strategies."
The company now expects net income to be between 25 cents and 27 cents a share during the quarter, also missing Wall Street's consensus forecast of 39 cents a share, according to Thomson Reuters.
"As we entered the fourth quarter, we experienced mixed sales results that have since improved. I am inspired by the team's response and passion towards making this another successful holiday season, and I am confident that we will continue to deliver an unparalleled guest experience across all our channels and regions around the globe." Mr.Potdevin continued.
Lululemon shares dropped as much as 22.61 percent to $51.33 in the early trading in New York.