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NEW YORK, United States — Lululemon Athletica Inc. shares dropped in early trading after the yogawear retailer cut its revenue and earnings forecast for the quarter ending Feb. 2.
“Since the beginning of January, we have seen traffic and sales trends decelerate meaningfully,” Chief Financial Officer John Currie said in a statement today.
The stock fell 7.7 percent to $55 at 6:59 a.m. before the markets opened. For the fourth quarter, Vancouver-based Lululemon now anticipates revenue of as much as $518 million, down from a maximum of $540 million. Earnings will be 71 cents to 73 cents a share, compared with a previous forecast of 78 cents to 80 cents, according to the statement. Analysts estimated revenue of $541 million and earnings of 79 cents a share.
Lululemon is joining retailers from L Brands, owner of the Victoria’s Secret lingerie brand, to discounter Family Dollar Stores Inc. in reducing forecasts this month. The yogawear maker, which had to recall pants last year for being too sheer, named a new chief executive officer last month.
By Cecile Daurat; Editors: Cecile Daurat, James Callan
