Stretched Guidance From Lululemon Well Shy Of Street's Estimates

em>Joel Elconin is the co-host of

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Lululemon

shares are trading sharply lower by $9 at $55.05 in Thursday's session. Despite a Q2 beat for EPS ($0.34 vs, $0.33) and for sales ($453M vs, $445.76) and raised the guidance the issue is being destroyed in today's session. The reason being the raised guidance fell short of Wall Street estimates for the company. For Q3 the company forecasts $0.35 to $0.37, while the Street stands at $0.43. For the fiscal year the company forecasts $1.89-$1.92 while Street estimates stand at $1.93. The thrashing in the premarket has continued into the regular session. After taking the issue from Wednesday's close ($64.05) to the $60 level, it managed a brief pop off the open to $60.80 before sellers flooded the issue. Around 12:25 PM Evercore ISI downgraded the issue to a sell. That took the issue beyond its Flash Crash low ($55.16) to $54.67 and now is attempting to reclaim the $55 level.