"While the guide down was widely expected ... we're not sure that it will, or should, provide investors with much relief as Lulu has a lot going on this year, and the stock is not cheap based on the new guidance," wrote Faye Landes, an analyst at Cowen and Co.
The company forecast first-quarter profit of 31 cents to 33 cents per share on revenue of $377 million to $382 million and flat total combined comparable store sales.
Analysts, on average, had estimated first-quarter profit of 38 cents per share on revenue of $389.4 million, according to Thomson Reuters I/B/E/S.
For the 2014 fiscal year, Lululemon forecast profit of $1.80 to $1.90 per share on revenue of $1.77 billion to $1.82 billion, based on a total combined same-store sales increase in the low to mid-single digits in percentage terms.
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For the full year, analysts had forecast earnings of $2.14 a share and revenue of $1.82 billion.
"As we move into 2014, we are reflecting on our learnings with humility, and are entirely focused on our future," Laurent Potdevin, Lululemon's new chief executive, said in a statement.
"2014 is an investment year with an emphasis on strengthening our foundation, reigniting our product engine, and accelerating sustainable and controlled global expansion."
Potdevin, who was most recently president of trendy footwear brand TOMS Shoes, is expected to lead the company into its next expansion phase.
This includes tackling the international market, growing its e-commerce business, while repairing Lululemon's image after it was damaged by the recall a year ago of its signature yoga pants that were deemed too see-through.
Later in the year, it acknowledged sales had been hurt by negative press about the product recall and after founder Chip Wilson said Lululemon products "just actually don't work" with some women's body shapes.