After earnings report, lululemon in downward-dog pose

Posted Jun 11th 2009 5:30PM by Beth Gaston Moon
Filed under: Major Movement, Earnings Reports, Bad News

Athletic apparel company Lululemon Athletica Inc. (NASDAQ: LULU) struck a pose in the earnings confessional today, announcing revenue and earnings per share for the fiscal first quarter.

Net revenue jumped 6% to $81.7 million, while same-store sales slipped 8% lower. Profit, meanwhile, fell to $6.5 million, or nine cents per share, down from 12 cents in the year-earlier period but one penny ahead of analysts' estimates.

Looking ahead to the second-quarter reporting period, LULU expects same-store sales to decline in the middle-single digits. Net revenue is expected to be in a range of $85 million to $90 million, with per-share earnings of eight to nine cents. And that, there, is the rub. Analysts were projecting per-share results of 11 cents in the second quarter, making this a definite "miss" in terms of guidance.

The shares gapped lower out of the gate but remain in their trading range -- between the 11 and 14 levels. LULU rallied into this area in late March and has shuffled sideways ever since.

Beth works for The Options News Network (www.ONN.tv), which provides daily stock and options commentary. The above comments are not intended as trading advice.

Tags: earnings reports, EarningsReports, lulu, lululemon