Boston, MA 06/12/2014 (wallstreetpr) – Athletic apparel designer and retailer, Lululemon Athletica Inc. (NASDAQ:LULU), shares are crashing in Thursday trading session by $15.25% after the company failed to impress with its first quarter financial results. Lowering of full year guidance seem not to have gone well with traders at Wall Street. The company updated its full year revenue to between $1.77 billion and $1.8 billion from an initially given estimate if between $1.77 billion and $1.82 billion.
Lululemon Board Approves Share Repurchase Program
Lululemon Athletica Inc. (NASDAQ:LULU) has also confirmed that its Board of directors has approved a share buyback valued at $450 million. The time and the number of shares to be repurchased under the approved program will depend on market conditions and other factors as detailed with the Securities and Exchange Commission. The share buyback is part Lululemon’s strategy to create shareholder value through the creation of opportunistic repurchases during favorable market conditions.
Lululemon’s adjusted profit and revenue beat Wall Street’s expectations despite the company being stung by one time tax adjustment. The company has also confirmed that its Chief Financial Officer John Currie will retire by the end of the current fiscal year. Lululemon has been trying to work on its business ever since it was forced to pull down one of its yoga pants as they were found to be extremely sheer.
Lululemon Founder Votes against Michael Casey and RoAnn Costin
Lululemon Athletica Inc. (NASDAQ:LULU) announced its financial report a day after its founder, Chip Wilson, made known that he had voted against the reelection of directors Michael Casey and RoAnn Costin. MR. Wilson believes that there is a need for board changes if the company is to deliver maximum shareholder value. Mr. Wilson also stated that he had voted against the two citing they are focused on short term growth.
The company is currently pursuing international expansion after experiencing increased competition in the current markets of operation. Same store sales for the first quarter were low by 4% on a year over, year basis. Lululemon diluted earnings per share came in at $0.34 on revenues of $384.6 million against estimates of $0.32 on revenues of $381.2 million.
For the second quarter, Lululemon Athletica Inc. (NASDAQ:LULU) projects earnings per share of between $0.28 to $0.30 on revenues of between $375 million and $380 million.
