Canadian retailer, Lululemon Athletica Inc (NASDAQ:LULU) saw its shares tank 16% after reporting good Q3 results that missed analysts’ revenue estimates.
Revenues rose 31 percent to $230.2 million against an analyst forecast of $235.7 million. Profit was higher at $38.8 million (27 cents a share) against $25.7 million (18 cents a share) last year. Analysts had expected earnings at 25 cents a share.
For its fourth quarter, the company forecasts earnings between 40-42 cents coming from revenues between $327-332 million.
Nomura analyst Paul Lejuez wrote in a research note:
“Lulu remains an attractive growth story, in our view; however, today’s numbers likely won’t be enough to keep the stock going at its current multiple.”