Lululemon Crushed As Company Cuts Revenue Outlook On Rising Costs

Photo: lululemon athletica via Flickr

Superstar stock Lululemon Athletica is down around 4% today on a weaker revenue outlook for the first quarter than analysts expected.After posting a revenue increase of 53% to $245.4 million for the fourth quarter the company said its revenue outlook for the first quarter is $175 million to $180 million, falling short of analyst hopes.

Here is why Lululemon lowered its outlook (via Reuters):

  • It expects more cost pressures this year
  • Huge demand during the holidays has put pressure on inventory
  • It is spending more on air freight to boost stocks at stores
  • It is going to have to invest more on technological and management systems to support its rapid expansion.

Here is how Lululemon became the stock everyone wants to invest in >

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