UPDATE 4-Yogawear chain Lululemon cuts forecasts; shares dive

Mon Jan 13, 2014 3:17pm EST
 
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* Company sees 4th-qtr revenue of $513-$518 mln

* Previous forecast was for $535-$540 mln

* Sees earnings 71-73 cents/share, down from 78-80 cents

* Sees negative same store sales, down from flat

* Stock hits $49, lowest in two years (Adds background and comments from analysts; updates stock price)

By Susan Taylor

Jan 13 (Reuters) - Sales at Lululemon Athletica Inc's established stores will likely fall in its latest quarter, the first year-on-year drop since 2009, the company warned on Monday, the latest in a spate of setbacks for the once high-flying yogawear retailer.

The stock dropped as much as 18 percent after the warning, the second such dive in less than two months, as analysts and investors questioned whether demand was faltering in the face of increased competition or whether supply-chain and other internal problems were to blame.

The Vancouver, British Columbia-based company, which has carved out a lucrative niche selling fashionable high-end workout clothes, said same-store sales, revenue and earnings in its fourth quarter, ending Feb. 2, would be lower than it forecast in December because traffic and sales in January slowed "meaningfully".   Continued...