UPDATE 5-Lululemon reassures investors that its problems are temporary

Thu Mar 26, 2015 1:23pm EDT
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* Lululemon says weather, port delays weigh on outlook

* Shares surge more than 7 percent

* Earnings of 78 cents a share beat analysts' estimates (Adds analyst comments, details, stock reaction)

By Solarina Ho

March 26 (Reuters) - Canadian yogawear retailer Lululemon Athletica Inc on Thursday reported stronger-than-expected quarterly results and gave a weak outlook that it said was largely due to temporary problems.

The company's shares were up more than 7 percent after investors were reassured that the outlook did not reflect underlying obstacles to growth. Lululemon forecast earnings and revenue below Wall Street estimates, citing West Coast port delays, weather and currency factors.

"There may be a bit of relief that there's some explanation to some of that weakness," said ITG Investment Research analyst Matthew Jacob. "Investors that are bullish on the name continue to buy into notion that this is a company that continues to progress toward turning things around."

Still, Jacob expressed caution, saying the outlook appeared weaker even accounting for external factors.

"I think they're getting a little bit of a pass on (the forecast) from investors," he said.   Continued...