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Lululemon & Inditex stir up over-night trading

By FashionUnited

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Lululemon Athletica was on the cover page Tuesday after

the yoga apparel retailer broke the news of its CEO’s departure. Lululemon shares were down 13.5 percent in pre-market trading on the Nasdaq stock market ahead of the open, in acute contrast with the multi-year hights the stock reached recently.

Lululemon Athletica Inc. (TSX:LLL) shares are expected to drop sharply in North American markets in the following sessions following news that the company's Chief Executive has decided to leave. They closed at 82.28 dollars a share on Monday before the announcement. The shares have been trading near multi-year highs recently.

On Monday, CEO Christine Day announced she has decided to leave the company. Day, who will remain as CEO while the board searches for a replacement, provided little explanation for her departure beyond saying the time was right.

The company reported quarterly figures also on Monday, noting gross profit for the quarter increased 9 percent to 170.7 million dollars. Net revenue gross profit decreased to 49.4 percent for the period and compared against 55 percent a year before. For the second quarter of fiscal 2013, Lululemon Athletica expects net revenues to be in the range of 340 million dollars to 345 million dollars based on a comparable-store sales percentage increase of 5 percent to 7 percent on a constant-dollar basis.

In a separate note, Inditex got a good deal of attention as well, as the largest apparel retailer was reporting yearly figures on Wednesday. Analysts expected Zara’s owner’s sales and profit to come lower than 12 months ago. Profit is expected to come at 440 million euros, as pointed out by the average of 20 analysts’ estimates compiled by Bloomberg.
FashionUnited