LULU Stock: 6 Reasons Why Lululemon Investors Are Feeling Short of Breath Today

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Lululemon Athletica (NASDAQ:LULU) stock is taking a beating on Monday after releasing updated expectations for its Q4 2021 earnings report.

Source: Richard Frazier / Shutterstock.com

Let’s dive into that news below to see why investors aren’t happy about this news!

  • First off, the company is now expecting its adjusted earnings per share to be at the low range of its $3.25 to $3.32 guidance.
  • That’s not good for LULU stock considering Wall Street’s estimate of $3.34 per share for the period.
  • To go along with that, the company’s also looking for revenue to be at the low end of its $2.125 billion to $2.165 billion Q4 outlook.
  • Yet again, that doesn’t stock up next to analysts’ revenue estimate of $2.17 billion for the upcoming earnings report.
  • It’s also worth noting that members of the company’s management team will be meeting with analysts and investors at the ICR Conference.
  • That starts today and will last through Wednesday.

Calvin McDonald, CEO of Lululemon Athletica, said this in the news release hammering LULU stock today.

“We are closing out a strong 2021 in the coming weeks, and we’re pleased with how lululemon has delivered over the course of the year. We started the holiday season in a strong position but have since experienced several consequences of the Omicron variant, including increased capacity constraints, more limited staff availability, and reduced operating hours in certain locations. I am proud of how our teams continue to deliver for our guests, and we are excited about what the future holds for lululemon.”

Heavy trading today has more than 2 million shares of LULU stock changing hands as of this writing. That’s already above the company’s daily average trading volume of 1.1 million shares.

LULU stock is down 6.2% as of Monday morning.

Investors looking for more stock market news will want to stick around!

We’ve got all the latest stock coverage traders need to know about for Monday! A few examples include what’s happening with EV stocks today, as well as the latest concerning Ocugen (NASDAQ:OCGN) and Zynga (NASDAQ:ZNGA). You can learn all about that at the following links!

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.