An earnings miss that will send share prices tumbling seems imminent for both of these stocks. These are two stocks investors must avoid if they don’t own them and sell if they do.

You think stock prices have been volatile of late? Well, that is nothing compared to how this due reacts to their earnings announcements.

Lululemon Athletica inc.’s History of Undressing Investors

Wall Street says Lululemon Athletica inc, (NASDAQ:  LULU) will earn $0.80 per share when they report results on Wednesday, March 30th.  Expect actual numbers to be a penny or two less than analysts’ forecasts.

In case you don’t know, Lululemon manufactures and distributes athletic apparel and accessories for women, men, and youth. Primarily, they are known for yoga clothing, particularly pants (sometimes see-through – Google it).

For the last nine months, the consumer goods company struggled to make Wall Street’s grade, including falling short of the mark last quarter. Underwhelming results are a departure from years of smashing estimates.

Despite the record of making a joke of Wall Street’s quarterly projections, LULU shares sank more often than not in the three days before and after release. Investors wore a black-eye seven of the last 12 quarterly checkups.

On average, Lululemon Athletica’s price dropped 10.87% for the unlucky seven quarters and popped a nearly symmetrical 10.54% for the remaining five. Last quarter’s disappointment saw shares slide more than 12%, an improvement from a 15% nosedive the previous quarter.

Don’t be shocked by another unwelcome earnings miss or lowered guidance as Google Trends suggest sales growth might not be as robust as predicted. Revenue is slated to rise 14.80% year-over-year (YoY), but Google searches say not so fast.

Web searches for the keyword “Lululemon Athletica” are up only 6.7%. While not perfect, Google Trends has often served as a reliable indicator of consumer interest. In this case, requests fall well short of LULU’s top-line prognostications.

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