Shares of lululemon athletica are down 9% in premarket trading.
The ugly move comes after the yoga-pants maker said comparable-store sales climbed by 8% in its fiscal Q2.
However, management slashed its full-year sales and earnings estimates.
“Lululemon same-store sales peaked 13 quarters ago,” tweeted retail expert Brian Sozzi.
From the outlook section of the company’s earnings announcement:
For the third quarter of fiscal 2013, we expect net revenue to be in the range of $US370 million to $US375 million based on a comparable-store sales percentage increase in the mid-single digits on a constant-dollar basis. Diluted earnings per share are expected to be in the range of $US0.39 to $US0.41 for the quarter. This assumes 146.0 million diluted weighted-average shares outstanding and a tax rate of 30.0%.
For the full fiscal 2013, we now expect net revenue to be in the range of $US1.625 billion to $US1.635 billion and diluted earnings per share are expected to be in the range of $US1.94 to $US1.97 for the full year. This assumes 146.0 million diluted weighted-average shares outstanding and a tax rate of 30.0%.
“We are well on our way to finishing 2013 as a much stronger company than when the year began,” said lululemon’s Christine Day. “I am confident that the leadership currently in place coupled with a new CEO will have tremendous success leveraging the platform for growth.”
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