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lululemon Lululemon shares lose a third of their value

Lululemon shares shed a third of their value

Shares in Vancouver-based Lululemon Athletica Inc. lost a third of their value Thursday right after the .

toms outlet store, yoga put on retailer scaled back on its profit forecast, citing the flagging economy and Canadian dollar.

Lululemon, ,lululemon blog, which had largely escaped the overall performance downturn of other discretionary retailers in current months, ,lululemon ebay, reduce its fiscal 2008 earnings forecast to a selection of US55¢ ,

lululemon, to US57¢ per share from a prior forecast of US68¢ to US71¢. It cut its revenue outlook to in between US$340-million and US$345-million from in between US$380-million and US$385-million.

More crucially, executives predicted that previously ,http://australialululemonsale.webs.com/, robust same-store sales, a crucial retail benchmark tracking volume at areas open for more than a year, could decline inside the low double digits on a percentage basis inside the fourth quarter.

"We usually are not immune for the squeeze on customer spending plus the promotional environment currently," chief executive Christine Day mentioned through a conference contact with analysts. Ms. Day mentioned sales started weakening in October and same-store sales declined in November.

Thursday marked an all-time nadir ,tljdesign.com/wdesign.html, for the firm, whose shares quickly doubled in value right after a US$18 initial public share supplying in July 2007. .

lululemon canada, Within the final 12 months, the stock has lost about 84% of its worth.

Though third-quarter outcomes announced Thursday ,www.forever21dress.com/, came just above forecasts, the reduce in guidance was deeper than anticipated, said analyst Tal Woolley of RBC Capital Markets.

Pronouncing the outlook "a kick inside the Chakras," the retailing analyst estimated a 10% decline inside the Canadian dollar will have a $6-million damaging effect on annual earnings ahead of interest and taxes, or 6¢ per .

toms outlet, share, in 2008. "Based around the seasonality and also the existing exchange price, 55% to 60% of the ,toms shoes nashville, guidance reduction appears currency driven," he mentioned .

forever 21, within a note to clientele. dollars.

The company reported a third quarter profit of US$8.8-million or US13¢ a share, compared with US$7.9-million or US12¢ a share for precisely the same period a year ago. Sales climbed to US$87-million from US$64.9-million. That compared with mean analyst estimates of US12¢, in accordance with Thomson Monetary.

Analyst Paul Lejuez of Credit Suisse downgraded his recommendation on the shares to neutral from outperform. "[Lululemon] remains one particular in the most effective growth ideas in retail," he wrote inside a note to clients. "However, it has clearly hit a rough patch from a sales point of view -- worse than we anticipated.

"With small visibility in towards the second half of 2009, we think the stock is dead cash, at most effective, more than the following a number of quarters."

Lululemon, whose shares closed down $4.35 around the Toronto Stock Exchange to $8.80, is still sticking to its strategy of adding a total of 35 places in North America this year. Around the Nasdaq Stock Exchange, shares were down US$3.38 to US$7.08.

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lululemon Lululemon shares lose a third of their value

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