Investors are rewarding athletic apparel maker Lululemon (LULU) for remaining zen.
The company, known for its fashionable yoga pants, beat analyst expectations with its third quarter profits and revenues. The only hiccup: guidance. The company said it expects sales to grow in the high single digits in the fourth quarter. That's good for most retailers but points to a slowdown for Lululemon.
Investors didn't seem too worried about a slowdown. The stock traded up more than 4% Thursday. And several traders on StockTwits admired the company's conservatism.
Even with a slowdown in sales, Lululemon still looks good to many investors once they look around at other brands and retailers.
While Apple (AAPL) may not be the ideal comparison this week, a hot brand is a hot brand. Longer-term what could really help the company's growth prospect is the emerging male yogi. More men in Lululemon's yoga pants? A new clientele.
Another momentum darling bites the dust. For now at least. Yoga apparel maker Lululemon (LULU) sank nearly 10% Thursday on weak guidance. Let the downward dog jokes begin.
KidDynamiteBlog: being bearish on $LULU is being bearish on womens' desire to have their butts look good in tight pants. I hate that trade.
Don't we all?
ivanhoff: There was a time when I thought that Ostrich bags and Lululemon pants were recessionproof $COH $LULU
Nothing MOREPaul R. La Monica - Jun 7, 2012 3:14 PM ET
Not a member yet?Sign up now for a free account
|The Deep Web you don't know about|
|Pizza chain Sbarro files for bankruptcy|
|Colorado gets $2 million from marijuana taxes|
|Invest $1 million, try for a U.S. green card|
|Shodan: The scariest search engine on the Internet|