Posted by & filed under Company Analysis, Financial analysis, Financial Planning, Growth & Valuation.

Description: Canadian yogawear retailer Lululemon Athletica Inc forecast earnings and revenue below expectations on Thursday, but its shares rose after executives said the weak outlook was largely due to temporary West Coast port delays and currency factors. The stock was up 6.2% at US$64.73 in morning trading, with investors reassured that the outlook did not reflect underlying obstacles to growth.

Source: FinancialPost.com

Date: March 26, 2015

Link: http://business.financialpost.com/2015/03/26/lululemon-athletica-incs-shares-slide-after-forecast-misses-estimates/

Questions for discussion:

  • What are the concerns investors would have over inventories?
  • Explain the reason for the jump in stock value.

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