See-Through Lululemon Pants to Hit Earnings
Yogawear retailer Lululemon Athletica reported quarterly earnings and revenue that edged above analysts' expectations on Thursday but forecast that a supply line mishap that produced see-through pants would hit its earnings in the current quarter.
After the earnings announcement, the company's shares fell in pre-market trading. (Click here to get the latest quotes for the company.)
(Read More: Lululemon Withdraws Sheer Yoga Pants)
The company's stock has been pressured this week since it said on Monday it was pulling many of its stretchy pants off store shelves because it had discovered they were too easy to see through.
The company posted fourth-quarter earnings excluding items of 75 cents per share, up from 51 cents a share in the year-earlier period. Revenue increased 31 percent to $485.5 million from $371.5 million a year ago.
Analysts had expected the company to report earnings excluding items of 74 cents a share on $482 million in revenue, according to a consensus estimate from Thomson Reuters.
Lululemon said it expected its earnings to drop in the current quarter, hurt by the recall of its transparent yoga pants. The company forecast first-quarter earnings per share between 28 cents and 30 cents, down from 32 cents a year earlier.
On Thursday, Lululemon said lost revenue, a write-down of the affected garments and other costs would reduce first-quarter earnings 11 cents to 12 cents a share in the first quarter, and between 25 cents and 27 cents a share for the full year.
Sales at established stores, a key measure for retailers, rose 10 percent. The company had forecast a gain in the "high-single digits."