Lululemon shares are tanking, down as much as 8% in premarket trading on Thursday.
The company reported second-quarter results that were, in fact, solid overall: Adjusted earnings per share of 34 cents barely beat the estimate for 33 cents, according to Bloomberg. Revenues for the maker of yoga pants were $US453 million, up 16% compared to the prior year, and topping the forecast for $US445 million.
Comparable sales — at stores open for at least one year — rose 6% on a constant dollar basis, in line with estimates and after a 1% drop in the first quarter.
The company also raised its full-year guidance, and expects net revenues to be between $US2.03 billion and $US2.05 billion, and diluted EPS in between $US1.87 and $US1.92.
The stock has had quite the run this year, and is up 15%. Over the past 12 months, it has rallied 63%.
In the earnings release, CEO Laurent Potdevin said: “We exceeded our revenue targets for the past quarter, supported by strong performance from both our store and e-commerce channels. Looking to the remainder of the year, our team is laser focused on meeting our strategic key goals: grow our global collective, relentlessly innovate our product lines and continue to create transformational experiences for our guests.”
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