TORONTO (Reuters) - Lululemon Athletica Inc
The sales forecast is a big reversal for Lululemon, which not long ago was posting same-store sales growth well into double digits. It was hit by an embarrassing recall this year after some of its signature black pants proved too see-through.
Shares of the company, which named a new chief executive earlier this week, slid 10.7 percent to $61 in trading before the morning bell on the Nasdaq.
For the current quarter, which includes the holiday shopping season, it forecast earnings between 78 and 80 cents a share, and revenue from $535 million to $540 million. Analysts had been expecting earnings of 84 cents a share on revenue of $571.8 million.
Net income for the third quarter rose to $66.1 million, or 45 cents per diluted share, from $57.3 million, or 39 cents, in the same period a year ago.
Revenue rose 20 percent to $379.9 million. Sales at established stores rose 5 percent.
Analysts, on average, had been expecting earnings of 41 cents a share on revenue of $376.2 million, according to Thomson Reuters I/B/E/S.
(Reporting by Solarina Ho and Allison Martell; Editing by Jeffrey Hodgson and James Dalgleish)