Shares of Lululemon Athletica Inc. (NASDAQ: LULU) slumped on Tuesday after the maker of yoga and athletic apparels said last evening that it will pull out its signature black luon fabric yoga pants from its stores, showroom and e-sales website after it was found that certain batch had “unacceptable level of sheerness”, the Company said.
The Vancouver, Canada-based Company said that due to product rollback, its top line, bottom line and comparable-store-sales will feel the pinch. For the fiscal first quarter, Lululemon expects sales in the range of $333 million to $343 million down from its original guidance of $350 million to $355 million. Same-store-sales, which was expected to grow by 11% before the product roll back is now expected to grow between 5% and 8%.
Shares of Affymax Inc. (NASDAQ: AFFY) were hammered after the biotechnology company announced that it was slashing 75% of its workforce even as it turn attention towards the ongoing investigation over its antianemia drug. The Company also said that it was looking at strategic alternatives, including merger and could even file for a bankruptcy.
Shares of Electric Arts Inc. (NASDAQ: EA) tumbled on Tuesday. Late last evening, the troubled developer, publisher of video games said that Chief Executive John Riccitiello will step down from his position on March 30. The Company said that ex-CEO Larry Probst will serve as the executive chairman until the search for a replacement is on. Meanwhile, the Company also warned that earnings per share and revenue for the current quarter could miss analysts’ consensus estimate or come at the lower range of the initial guidance as its latest launch “Simcity” failed in the market due to technical errors. Despite aggressive marketing efforts ahead of the launch of Simcity, sales expectations and company’s reputation took a beating after it was found that some technical glitches obstructed users’ ability to play the game properly.
Shares of Skullcandy Inc. (NASDAQ: SKUL) jumped after the head phone maker last evening announced that Hoby Darling, a former top executive from Nike Inc, will serve as the President and Chief Executive of the Company. The move comes at a time when Skullcandy is focusing on new distribution channels and look to transform itself in the backdrop of changing dynamics of the audio category.
Hoby Darling served as the general manager at Nike’s digital division, a segment which is engaged in making tech-intensive sports gear such as motion tracking FuelBank.
Shares of fast food chain Burger King Worldwide Inc. (NYSE: BKW) gained after the company introduced an exciting line-up of 12 new offerings, ranging from sandwiches, beverages and spicy sides.
“Our signature fire-grilled burgers are the foundation of the Burger King menu and we are excited to offer our guests more variety as we celebrate Burger Fest,” said Flavia Faugeres, executive vice president and global chief marketing officer, Burger King Worldwide, Inc in a stamen.
Shares of Walgreen Company (NYSE: WAG) jumped after drug distributor AmerisourceBergen announced that it has entered in a 10-year distribution contract with the drugstore chain and associate Alliance Boots GmbH.
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