Canadian Stocks Mostly Lower Although Gains For Lululemon Putting Cap on Losses
Canadian stocks are down around 25 points Thursday, but have halved their earlier losses amid concerns about the economic outlook for Cyprus, which needs a bailout - and concerns about what kind of a knock on impact it might have on the European region as a whole.
The Industrials and Metals & Mining sectors are the biggest losers in percentage terms. Health Care is up.
In company news, Lululemon (LLL.TO, LULU) shares have reversed earlier declines to now trade about 1.6% higher, with better-than-expected financial results in the yoga apparel seller's Q4 starting to win out over ill feelings over the company's glum Q1 forecast in the wake of a wide-scale product recall.
LULU on Monday said it was pulling batches of stretchy pants made with its signature "Luon" fabric off store shelves because it had discovered they were too easy to see through, adding there likely would be product shortages as a result.
The company sees earnings in the Q1 ending next month of $0.28 to $0.30 a share, down from a $0.32 gain in the year-ago quarter and trailing the analyst consensus by at least $0.10 per share. It estimates the recall will trim Q1 EPS by $0.11 to $0.12 per share and by $0.25 to $0.27 per share during the full year ending next January.
Q1 revenue is seen in a range of $333 mln to $344 mln, or at least $1 mln below the consensus call of analysts polled by Capital IQ.
The lingering impact of the latest recall was overshadowing LULU beating analyst opinion during Q4. It earned $0.75 per share, a penny better than estimates, while revenue grew 30.6% to $485.5 mln, also beating the analyst consensus by 3.3 mln.