The yoga apparel company Lululemon lowered its outlook for sales and earnings, and shares consequently took a 10% tumble. That means that the company has had a 20% drop in shares for all of 2013.
Lulelemon’s chief financial officer John Currie told analysts that the store has seen a decrease in traffic, and that the trend will most likely continue in the fourth quarter. Right now, the company expects earnings of 78 to 80 cents per share with revenue of $535 million to $540 million.
The company has faced some difficulties in the past year though, as a massive recall in March was prompted by reports of see-through yoga pants. The company received a great deal of criticism and CEO Christine Day gave up her position around the same time. It was just recently announced that Laurent Potdevin will replace Day next year. Potdevin was the president of TOMS, a shoe company known for its promise to give a pair of shoes to a needy child with every purchase of its regular shoes.
Founder and chairman Chip Wilson also plans to leave in the coming year though, and has faced his own set of critics since commented that “some women’s bodies just don’t actually work” for Lululemon’s products.
“Let’s face it, we’ve had a lot of PR issues this year,” Currie said. “There is undoubtedly some impact on traffic and therefore the business.”
