underscored by a dim outlook by jewelry seller Tiffany & Co

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underscored by a dim outlook by jewelry seller Tiffany & Co

Post  yzf983221 on Thu 07 Jun 2012, 9:59 pm

Shares of athletic clothing seller Lululemon Athletica Inc. slid in premarket trading Thursday, despite a 40 percent jump in first-quarter net income, as the fast-growing company's outlook disappointed.
There have been growing worries about a pullback in shopping by the wealthy U.S. consumers that can buy $80 yoga pants, underscored by a dim outlook by jewelry seller Tiffany & Co. last month. Lower spending by affluent consumers would hurt Lululemon's business.
The company said profit in the three months through April 29 rose to $46.6 million, or 32 cents per share, from $33.4 million, or 23 cents per share, a year ago.
Analysts polled by FactSet expected, on average, profit of 30 cents per share.
Revenue rose 53 percent to $285.7 million from $186.8 million as shoppers' demand for the company's spring styles soared in its stores and on its website. Lululemon has 180 stores, mostly in the U.S. and Canada, up from 142 a year ago.
Analysts expected revenue of $274 million.
Revenue in stores open at least a year rose 25 percent when stripping out the effect of changing currency values an important measure because it includes only established stores, not newly opened stores whose sales can skew growth patterns. Online sales nearly tripled, becoming 13.5 percent of total revenue from 7.4 percent a year ago.
But Lululemon's forecast alarmed investors. The company, which is based in Canada, predicts earnings of 28 cents to 30 cents per share on revenue of $273 million to $278 million in the current quarter, when analysts predict profit of 33 cents per share on revenue of $289.2 million.
The forecast for the full year, which ends in January 2013, also fell short. Lululemon expects earnings per share of $1.55 to $1.60 on revenue of $1.32 billion to $1.34 billion, while analysts are forecasting profit of $1.63 per share on revenue of $1.35 billion.
Shares dropped $6.84, or 9.8 percent, to $63.18 ahead of the market open. The stock is up nearly 69 percent over the past 52 weeks, but has leveled off recently. It's risen just 2 percent over the last 3 months.tiffany and co .

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