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Lululemon is crashing

Dec 9, 2015, 18:34 IST

https://www.facebook.com/lululemon

Lululemon shares were sharply lower pre-market on Wednesday after the company reported third-quarter results that fell short of what analysts had expected.

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The athletic-apparel company missed on the top and bottom line metrics. Adjusted earnings per share were $0.35, versus $0.37 estimated according to Bloomberg. Sales totaled $480 million, below the estimate for $481 million.

The company's gross margins also fell a bit short of expectations, at 46.9%, amid concerns that the competition is eroding its market share, and inventories are piling up.

Shares fell by as much as 11% pre-market. This year, they've fallen about 6%.

""We had a solid quarter in line with our expectations underscored by the combination of our product, guest and community initiatives along with tremendous guest reception to major store openings around the world," CEO Laurent Potdevin said in the press release.

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