Lululemon Plummets 22% Amid Poor Guidance

Lululemon Athletica inc. LULU shares are trading lower by $14.40 (22 percent) at $51.90 in Thursday's session. Despite a Q4 beat of a penny along with a sales beat, the stock is being punished for its lower Q1 and FY 2017 EPS and sales guidance.

Adding to the selling pressure is the fact the Street was leaning the wrong way into the report as the issue gained nearly $2.00 in Wednesday's session, from $63.68 to $66.30.

See Also: Lululemon Crushed Following 'Slow Start' To The Year

After a lower open, lululemon's stock found early support at $51.75 and rebounded to $52.90 before continuing its move lower. The ensuing decline has taken the issue to $51.31 and it's now struggling to reclaim the $52.00 handle.

The current low matches December 30 low of $51.34. The stock had a low in that same area on December 22, 2015 at $51.38. Corresponding to the $50.00 psychological support level is its December 21, 2015 low of $50.35.