Lululemon reduces profit forecast
Lululemon Athletica Inc. had reduced its annual profit forecast after delays in getting new merchandise limited sales. The retailer previously recalled shipments of yoga pants for being too sheer, according to a Bloomberg report.
Vancouver based Lululemon said that the company's earnings per share would be as much as USD1.97. The new forecasted amount was lower from the previous projection of a maximum USD2.01. Meanwhile, Bloomberg compiled 29 analysts' estimates of the company's average annual profit forecast to be at USD1.99.
Chief Financial Officer John Currie announced on a conference call today that the third quarter sales were off to a slow start. This was after the recall of Lululemon's yoga pants delayed the delivery of new merchandise. The recall was announced last March following the exit of the company's top product officer CEO Christine Day.
Lululemon fell 6.4% to USD64.63 at 10:36 a.m in New York today. The shares earlier slid to as much as 8% for the biggest intraday drop from June 11.