The recall has already shaken up the top brass in the company. The board is currently looking for a new CEO. The old CEO will leave as soon as the new CEO is hired.
In the meantime the rapidly growing company is taking a breather in profit expansion.
For the 2013 fiscal year, which ends in February, Lululemon expects net revenue of $1.625 billion to $1.635 billion, down from its previous forecast of $1.645 billion to $1.665 billion.
The company trimmed its forecast for full-year earnings per share to $1.94 to $1.97 from the previous $1.96 to $2.01.
Lululemon forecast third-quarter net revenue of $370 million to $375 million, and diluted earnings per share of 39 cents to 41 cents.
The company has traded down from a high in June, With the stock price almost literally falling off a cliff has seen in the chart below.
Lululemon’s stock price is on the low end of a medium-term trading range between $62 and $82. Traders and aggressive growth investors should jump in here. Everyone else should be cautious with this volatile stock.
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