Lululemon cuts outlook on weak January sales

NEW YORK - Lululemon Athletica Inc. (LULU) is lowering its fiscal fourth-quarter forecasts below analysts' estimates due to declining traffic and sales in January.

The yoga-inspired clothing company's stock dropped more than 7 percent in Monday premarket trading.

Lululemon now foresees quarterly earnings between 71 cents and 73 cents per share on revenue in a range of $513 million to $518 million. Its prior guidance was for earnings of 78 cents to 80 cents per share on revenue of $535 million to $540 million.

Analysts polled by FactSet predict earnings of 79 cents per share on revenue of $541.2 million.

Lululemon also anticipates sales at stores open at least a year to decline by a low- to mid- single digit percentage rate.

The company is expected to report final fourth-quarter financial results on March 27.