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Lululemon Cuts Earnings and Revenue Guidance for the Fourth Quarter

Shares of Lululemon Athletica inc. (NASDAQ:LULU) are currently experiencing a 18 percent decline after issuing guidance on fourth quarter earnings. The athletic apparel retailer cut its earnings forecast for the quarter as a result of a slowdown in January sales. Customer traffic has steadily declined since the start of the New Year. The company expects earnings at a range of 71 cents to 73 cents a share for the fourth quarter, which is significantly down from the previous estimate of 78 cents to 80 cents a share. In addition, revenue was also cut for the period.

Retailers left and right are cutting forecast estimates and sounding off on weaker store traffic. Moreover, some retailers are also warning about a decrease in fourth quarter earnings as a result of deep discounts for the holiday season.