Tallahassee, FL 12/1/11 (StreetBeat) --Yoga apparel retailer Lululemon Athletica (Nasdaq:LULU) said Thursday that third-quarter earnings rose 50% to 27 cents a share, two cents above Wall Street estimates. Sales climbed 31% to $230.2 million, but that missed analyst forecasts for $235.9 million. Same-store sales grew by 16% vs. a year earlier, despite the overall sluggish economy.The Canada-based chain gave a fourth-quarter profit estimate of 40-42 cents a share on $327 million-$332 million in revenue. Wall Street predicts 41 cents on $327.3 million. The retailer sees same-store percentage growth in the low- to mid-teens.
Shares fell 15% to 42.12 soon after the opening bell, the lowest level since early June.
Lululemon has struggled this year with shortages that forced it to airship in goods — raising costs and leaving future quarters leaner. But heading into Thursday's report analysts think it's largely caught up.
Lululemon's big U.S. expansion in recent years has eased concerns of slowing growth in its home market. The retailer also has tried to diversify beyond stretchy yoga pants and tank tops into running and cycling apparel. It's also trying to appeal more to men. And it's making a bigger online push. But female athletes remain its core customers.
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