Investors are having second thoughts about Lululemon Athletica Inc.’s lofty valuation. Big valuations are usually reserved for companies that can grow their revenues or earnings at an impressive pace, consistently, quarter after quarter. Lululemon no longer fits this description.
On Monday, the yoga-wear company warned that its fiscal fourth-quarter results would be lower than expected. It now sees earnings ranging between 71 (U.S.) and 73 cents a share, down from an earlier estimate that ranged between 78 and 80 cents a share.