Lululemon Drops on Light Revenue
Shares of lululemon (NASDAQ: LULU) dropped over 7 percent in after-hours trading on Monday after the company released guidance on its upcoming earnings report.
The yoga apparel maker said that its earnings would come in line with Wall Street expectations, at $0.74. However, to the dismay of shareholders, the company said revenue would come in near $480 million -- the Street was looking for about $489 million.
Lululemon has been a hot stock in recent years, as the increasing popularity of yoga has propelled sales of the company's expensive athletic apparel.
Yet, the company's meteoric rise has attracted short sellers who remain skeptical that the company's rapid growth can be maintained. Short interest is currently around 22 percent.
Shares of lululemon closed up 2.06 percent on Monday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.