Lululemon shares plunge on poor outlook

It's been a bumpy ride for Lululemon shares this year.

NEW YORK (CNNMoney)

Shares of Lululemon (LULU) fell nearly 9% in early trading after the yoga apparel maker lowered its earnings and sales outlook.

Lululemon expects to earn between 78 cents and 80 cents per share in the current quarter, while revenue is estimated between $535 million to $540 million. Analysts had been expecting earnings of 84 cents per share on revenue of $572 million. The company also gave earnings and sales guidance for the upcoming fiscal year that was below Wall Street's consensus estimates.

Lululemon CEO Christine Day, who will step down in January, said the outlook "is being impacted by both macro and execution issues."

She said 2014 has been a year of "challenges, learning, and growth" for the company. But she argued that the investments the company is making will ultimately pay off.

Related: Lululemon in an uncomfortable position

The results come two days after Lululemon said Laurent Potdevin, who had been the president of shoe company TOMS, would replace Day next year. In a surprise move, the company also said founder and non-executive chairman Chip Wilson will resign in June 2014.

Lululemon has been a fast-growing success story over the past few years. But the company has had a few setbacks this year.

In March, Lululemon announced a recall of yoga pants that were unintentionally see-through, which took a toll on the company's bottom line. Wilson also came under fire for saying in an interview that "some women's bodies just don't actually work" for Lululemon's pants.

The company's stock, which has soared more than 1,700% over the past five years, has missed this year's rally. Including Thursday's big drop, Lululemon shares are now down nearly 20% so far in 2013.

First Published: December 12, 2013: 9:37 AM ET

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