March 27 - Lululemon Athletica's new CEO says 2014 will be an ''investment year'' as the yoga pants retailer issued a weak forecast. Fred Katayama reports.
The retailer of those fashionable yoga pants, Lululemon, doesn't look like it'll be stretching its sales much further. Profit was flat on comparable store sales that fell in the latest quarter. And it sees flat sales ahead in the current quarter. Lululemon Athletica is under new management after a tumultuous year in which it recalled its best-selling yoga pants and comments its founder made about women's bodies ignited an uproar. Its new CEO calls 2014 an "investment year" in which she hopes to reignite its athletic leisure product line up. The company issued a weak outlook for the quarter and the year. Lululemon's new line of women's clothing, "&Go," sold out instantly on its launch this month. RBC analyst Howard Tubin said: "We are encouraged the new leadership at Lululemon remains committed to growing the brand's presence while maintaining high product innovation." The stock has fallen 23 percent over the last 12 months.