Lululemon Athletica inc. (NASDAQ:LULU) is down about 4.8% in Pre-market trading after their Earnings Release this morning. On CNBC, Pam Quintiliano of SunTrust, expressed much more hope for the designer and retailer of technical athletic apparel, than what the market was giving it credit for.
“[…] We do have a new CEO in place, who is trying to prove himself, so this is what we like to see, they came in above guidance. Revenue just a little light, towards $419.4 and the guidance was $420 to $425, and keep in mind that there are a lot of issues out there with the delays, so we want to hear more about whether they are going to get some more products in the store, so that is why they came in light […],” said Quintiliano.
Lululemon Athletica inc. (NASDAQ:LULU) beat earnings estimate by 4 cents. The company reported Earnings Per Share (EPS) of $0.42 as compared to the estimate of $0.38. However, the metiric which is most critical for the retailers, comparable-store sales was down about 3%, even though sales directly to consumers saw an increase of 16.3% to $77.2 million.
Lululemon Athletica inc. (NASDAQ:LULU) is down over 20% for the year while investors are waiting for that possible turnaround under the new management. The company’s products are rated high on the innovation front, but have come under fire because of inferior quality of material used, which ripped apart for some customers.
Lululemon Athletica inc. (NASDAQ:LULU)’s ex CEO and founder, Chip Wilson did not do well to address those concerns either, as he blamed those particular customers of being in the overweight category, and thus stretching the garment beyond its flexibility limits.
Apex Capital, which is run by Sanford Colen has increased its stake in Lululemon Athletica inc. (NASDAQ:LULU) by 41% according to the last filing period. The company is now 1.46% of the fund’s investment.
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